"Holding the casting vote in a finely balanced decision, Andrew Bailey, the Bank's governor, said that he wanted to wait and see whether inflationary pressures in the British economy would continue to fade and if Reeves's budget would have an impact. We held interest rates at 4% today. We still think rates are on a gradual path downwards, but we need to be sure that inflation is on track to return to our 2% target before we cut them again, he said."
"Expressing growing concern over the strength of the economy, the Bank said unemployment was on track to climb to a higher peak above 5% early next year amid subdued hiring demand. It said inflation was likely to have already peaked at 3.8%, below its previous prediction for an increase to about 4% this autumn, and was set to fall back to about"
The Bank of England's monetary policy committee voted 5-4 to keep the base rate at 4%, with Governor Andrew Bailey casting the deciding vote. The Bank will wait to see whether inflationary pressures continue to fade and whether the chancellor's upcoming budget affects the outlook before cutting rates. Inflation is running at 3.8%, above the 2% target, and borrowing costs have already been cut five times since the government change, most recently in August. Financial markets price a low probability of an immediate rate cut, while unemployment is forecast to peak above 5% early next year amid weak hiring demand.
Read at www.theguardian.com
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