2024-09-20 09:43:24
The Bank of England said on Thursday it would keep interest rates steady after cutting them in August, even after the Federal Reserve Bank of the United States choose one jumbo reduction of interest rates.
The Monetary Policy Committee voted 8 to 1 in favor, with the dissenting member voting for a cut of 0.25 (of the unit).
A “gradual approach” to monetary easing remains appropriate, with services inflation remaining “elevated”, the committee said. The UK economy has returned to growth but at a subdued level.
The British pound was up 0.72% against the US dollar at $1.3306. This was the highest rate since March 2022.
Last month the interest rate it had fallen from 5.25% to 5%, in the first reduction since the pandemic period and since the significant drop in price inflation.
Today’s decision follows the data that showed earlier in the week that the level of inflation remained for August at 2.2%, i.e. above the target of 2% that you have as a condition of the central bank’s mandate.
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