Notizie economiche
19.09.2024

BoE leaves its Bank Rate unchanged at 5.00%, as widely anticipated

The Bank of England (BoE) announced on Thursday that its Monetary Policy Committee (MPC) voted by a majority of 8-1 to keep the Bank Rate unchanged at 5.00 per cent at its September meeting. Meanwhile, one MPC member preferred to decrease the benchmark rate by 25 basis points. The outcome was in line with markets’ anticipations. 

In its policy statement, the BoE notes:

- Its MPC also voted unanimously to decrease the stock of UK government bond purchases held for monetary policy purposes, and financed by the issuance of central bank reserves, by GBP100 billion over the next 12 months, to a total of GBP558 billion;

- MPC sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment;

- MPC adopts a medium-term and forward-looking approach to determine monetary stance required to achieve the inflation target sustainably;

- MPC’s deliberations have been supported by the consideration of a range of cases, to which different probabilities and different risks can be attached;

- There has generally been limited news in UK economic indicators relative to MPC’s expectations in August;

- In the absence of material developments, a gradual approach to removing policy restraint remains appropriate;

- Monetary policy will need to continue to remain restrictive for sufficiently long until the risks to inflation returning sustainably to the 2% target in the medium term have dissipated further;

- MPC continues to monitor closely the risks of inflation persistence and will decide the appropriate degree of monetary policy restrictiveness at each meeting.

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