The Bank of England announced on Thursday that it will keep key interest rates at 5.25%, for the second time in a row, after several increases last year to control inflation.
At the end of the meeting, the Monetary Policy Committee of the English-issued bank voted six to three in favor of not changing the money rate, a decision that was widely expected by analysts.
Despite maintaining interest rates, the British central bank left a warning that it will continue with restrictive monetary policy “for an extended period of time,” although the economic outlook is pessimistic.
according to Financial TimesThe entity headed by Andrew John Bailey warned that economic growth would remain “well below the historical average” in the medium term.
The central bank added that “it is too early to think about lowering interest rates,” and does not rule out further increases to confront rising prices.
According to the latest official data, the UK CPI remained at 6.7% in September, the same value as the previous month, and above the Bank of England’s 2% target.
The UK central bank believes the British executive will be able to meet the target of halving inflation by the end of the year, but expects the CPI to fall below just 2% in 2025 (it reached 10.7% at the end of 2025). 2022).
The Governor of the Bank of England said: “There is no room for complacency with inflation.”
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