The Bank of England's recent update suggests its gradual rate-cutting process may be ending, amid a split MPC and potential political fallout affecting UK economic policy.
PANews reported that the Bank of England reiterated its gradual, cautious rate-cutting approach while hinting that its campaign may be concluding. In an unprecedented move, the MPC held two votes: five members, including Governor Bailey, supported lowering the rate from 4.25% to 4%, while four members, such as Deputy Governor Lombardelli and Chief Economist Peel, preferred to keep rates unchanged due to inflation concerns. Bailey described the decision as 'very balanced,' although he expects rates to continue a downward trend. This potential halt in rate cuts could challenge the policy goals of Chancellor Reeves and PM Starmer amid sluggish UK growth.