12:00 PM BST, United Kingdom - BoE Interest Rate Decision for August:
- actual 5.00%; forecast 5.00%; previous 5.25%;
إبدأ بالإستثمار اليوم أو تدرّب على حساب تجريبي
قم بفتح حساب حقيقي جرب الحساب التجريبي تحميل تطبيق الجوال تحميل تطبيق الجوالThe Monetary Policy Committee (MPC) has decided to reduce the Bank Rate by 0.25 percentage points to 5%, aiming to meet the 2% inflation target while supporting growth and employment. The decision was based on current and projected economic conditions, including a rise in inflation due to past energy price changes and persistent domestic inflationary pressures. The MPC emphasizes a forward-looking approach to maintain restrictive monetary policy until inflation risks are sufficiently mitigated.
Key Points:
- MPC voted 5–4 to reduce Bank Rate to 5%. Four members preferred maintaining the rate at 5.25%.
- Twelve-month CPI inflation at 2% in May and June, expected to rise to 2.75% in the second half of the year.
- Private sector earnings growth fell to 5.6%, and services CPI inflation declined to 5.7%.
- GDP has picked up but underlying momentum is weaker.
- MPC focuses on second-round effects of inflation, monitoring a broad range of indicators.
- Headline inflation expected to decrease, leading to weaker pay and price-setting dynamics.
- Margin of slack anticipated as GDP falls below potential and the labor market eases.
- Persistent inflationary pressures may persist due to higher demand and structural factors.
- Monetary policy will remain restrictive until inflation risks dissipate.
- CPI inflation projected to fall to 1.7% in two years and 1.5% in three years.
- Risks of inflation persistence remain, influenced by domestic wage and price-setting factors.
