The Bank of England has followed the lead of the Federal Reserve by holding rates steady.
The UK central bank’s Monetary Policy Committee (MPC) 8–1 to maintain the Bank Rate at 4.5%, with one dissenter seeking a 0.25 percentage point cut.
In announcing its decision, the MPC noted that although “there has been substantial progress on disinflation over the past two years,” it added that circumstances changed since the committee’s last meeting.
“Global trade policy uncertainty has intensified, and the United States has made a range of tariff announcements, to which some governments have responded,” said the MPC in a statement. “Other geopolitical uncertainties have also increased and indicators of financial market volatility have risen globally. The German government has announced plans for significant reform to its fiscal rules. While UK GDP growth estimates have been slightly stronger than expected at the time of the February Monetary Policy Report, business survey indicators generally continue to suggest weakness in growth and particularly in employment intentions. In recent quarters, subdued activity has been judged to reflect both demand and supply factors.”
