Notizie economiche
20.06.2024

BoE leaves its Bank Rate unchanged at 5.25%, as expected

The Bank of England (BoE) announced on Thursday its Monetary Policy Committee (MPC) voted by a majority of 7-1 to keep the Bank Rate unchanged at 5.25 per cent at its June meeting. Meanwhile, two MPC members preferred to cut the benchmark rate by 25 basis points. The outcome was in line with markets’ expectations.

In its policy statement, the BoE notes:

- 12-month CPI inflation fell to 2.0% in May, close to the BoE’s May projection but is expected to rise slightly in the second half of this year, as declines in energy prices last year fall out of the annual comparison;

- UK GDP appears to have grown more strongly than expected during the first half of this year;

- UK labour market continues to loosen but remains relatively tight by historical standards;

- Collective steer from a range of indicators of aggregate pay growth has continued to ease in the latest data;

- Restrictive stance of monetary policy is weighing on activity in the real economy, is leading to a looser labour market and is bearing down on inflationary pressures;

- Key indicators of inflation persistence have continued to moderate, although they remain elevated;

- Monetary policy will need to remain restrictive for sufficiently long to return inflation to the 2% target sustainably in the medium term;

- MPC has judged since last autumn that monetary policy needs to be restrictive for an extended period of time until the risk of inflation becoming embedded above the 2% target dissipates;

- MPC remains prepared to adjust monetary policy as warranted by economic data to return inflation to the 2% target sustainably;

- As part of the August forecast round, MPC members will consider all of the information available and how this affects the assessment that the risks from inflation persistence are receding. On that basis, the Committee will keep under review for how long Bank Rate should be maintained at its current level

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