The Bank of England is set to announce its interest-rate decision on Thursday, with markets widely expecting the central bank to keep its key rate unchanged at 3.75% following a majority vote.
According to Jin10, the meeting is expected to show the Monetary Policy Committee’s growing concern about inflation risks linked to a prolonged energy crisis.
After Bank of England Governor Andrew Bailey and Deputy Governor Ben Broadbent urged caution in responding to rising inflation risks, expectations have strengthened that the policy rate will remain steady.
“The momentum in the labor market has cooled significantly,” said Hetal Mehta, an economist at St James’s Place, adding that she did not see sufficient impetus for a rate increase at present.
However, at least two policymakers—Chief Economist Huw Pill and MPC member Megan Greene—have indicated they will call for an immediate rate hike.
Another MPC member, Catherine Mann, said that if the energy crisis worsens, a rate increase could not be ruled out at some point.
Bank of England Expected to Hold Rate at 3.75% as Energy-Driven Inflation Risks Remain
2026-06-15 04:30:01
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