UK Monetary Policy Summary
It's among the primary tools the MPC uses to communicate with investors about monetary policy. It contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes. Most importantly, it discusses the economic outlook and offers clues on the outcome of future votes;
Source first released in Aug 2015;
- History
Expected Impact / Date | Description |
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Jun 20, 2024 | |
May 9, 2024 | |
Mar 21, 2024 | |
Feb 1, 2024 | |
Dec 14, 2023 | |
Nov 2, 2023 | |
Sep 21, 2023 | |
Aug 3, 2023 | |
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- UK Monetary Policy Summary News
The BoE held its policy rate steady at 5.25% today, as widely expected by economists (including us) and fully priced in by markets, with an unchanged vote breakdown from May decision’s 7–2 split—with Dhingra and Ramsden again favouring a cut (a minority expected 8–1). There are two clear dovish elements in today’s communications (see below) that mean we leave our call for an August rate cut unchanged, though as always inflation/wages beats would delay the first move and the totality of cuts this year (we project 100bps, with risks ...
The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 19 June 2024, the MPC voted by a majority of 7–2 to maintain Bank Rate at 5.25%. Two members preferred to reduce Bank Rate by 0.25 percentage points, to 5%. Twelve-month CPI inflation fell to 2.0% in May from 3.2% in March, close to the May Monetary Policy Report projection. Indicators of short-term inflation expectations have also continued to ...
The Bank of England was set to hold its interest rate steady on Thursday despite slowing UK inflation, with higher price risks and Britain's looming election preventing a cut, according to analysts. Ahead of the 1100 GMT announcement, the Swiss National Bank unveiled a second straight interest-rate cut, after becoming in March the first Western central bank to slash borrowing costs that had been raised to battle inflation. Norway froze rates Thursday. The BoE was widely forecast to keep its cost of borrowing at 5.25 percent, a ...
The U.K. had some cause for celebration on Wednesday morning, as headline inflation hit the Bank of England’s 2% target for the first time in nearly three years. But the print only served to further convince traders that an interest rate cut is not imminent. Money market pricing by 11 a.m. in London implied just a 5% probability of a trim of the Bank Rate during Thursday’s BOE meeting — after recording stronger odds of such a step earlier in the week. Bets on an August cut were also trimmed to roughly 30%. While the 2% inflation ...
Taylor Swift’s record-shattering Eras Tour is continuing to supercharge consumer spending as it enters its U.K. leg, suggesting that the Bank of England may not be out of the woods yet in its fight against inflation. As hundreds of thousands of dedicated Swifties flock to London in August to see the singing sensation during her final U.K. dates, the economic boost could be enough to defer a possible September interest rate cut, according to investment bank TD Securities. “We still anticipate a BoE cut in August, but the inflation ...
The BoE’s May MPC meeting saw Deputy Governor Dave Ramsden join long-term dove Swati Dhingra in calling for an immediate 25 basis point cut in interest rates. The other seven members all again opted for no change. Approaching this month’s meeting, there has been a further, but less than wholly convincing, decline in inflation, while wages have remained stubbornly robust. Consequently, with the real economy having moved out of recession, the overall mix has left speculators expecting no change in Bank Rate and the first cut to be ...
post: UK BOE DEP. GOV. BROADBENT: MARKET RATE CURVE MAY BE A LITTLE HIGH, BUT IT DOESN'T MEAN IT IS UNREASONABLE.
post: BOE'S BAILEY - LIKELY WE WILL NEED TO CUT BANK RATE OVER THE COMING QUARTERS BOE'S BAILEY - POSSIBLE WE WILL NEED TO CUT RATES MORE THAN CURRENTLY PRICED INTO MARKET RATES post: BOE GOV. BAILEY: WE HAVE NO PRECONCEPTIONS ABOUT HOW FAR AND FAST WE WILL CUT RATES. post: BOE GOV. BAILEY: MARKET MOVES IN INTEREST RATE EXPECTATIONS HAVE BEEN DOMINATED BY US MOVES. post: BOE GOV. BAILEY: THERE HAS BEEN SOME DECOUPLING RECENTLY BETWEEN UK AND US MARKET RATE EXPECTATIONS. post: BOE GOV. BAILEY: ONE SMALL CUT IN THE BANK RATE WOULD STILL LEAVE US WITH RESTRICTIVE MONETARY POLICY.
Released on Jun 20, 2024 |
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Released on May 9, 2024 |
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