BoE's Decision on Interest Rates

In a recent announcement, the Bank of England's Monetary Policy Committee (MPC) has decided to maintain the headline bank rate at 4.5%, a move that aligns with market expectations. This decision came after a majority vote of 8-1, with a single member proposing a slight reduction of 0.25 percentage points.

Economic Indicators and Risks

The MPC highlighted the ongoing challenge of achieving the inflation target of 2%, especially with the current rate at 3%. Despite significant strides in reducing inflation, the bank pointed out persistent risks, including geopolitical tensions and the impact of US tariffs. Furthermore, the bank expressed concerns over the UK's economic growth, noting a general weakness in business surveys, particularly in employment intentions, which reflects both demand and supply factors.