Bank softens stance on interest rate cuts – but Andrew Bailey warns: ‘We’re not there yet’

It was a racing certainty that the Bank of England’s rate-setting Monetary Policy Committee (MPC) would on Thursday keep interest rates at 5.25 per cent – the 16-year high that has been causing pain throughout Britain’s economy.

Nonetheless, businesses were eagerly awaiting the MPC’s longer-term signals and the complexion of the vote. For those hoping for an early rate cut (praying, in the case of smaller firms desperate for affordable credit) there might be grounds for some optimism.

First, let’s look at the vote: last time, six backed no change, with the dissenting three favouring a quarter-point rise. This time, six backed no change but only two called for a rise, with one seeking a cut.

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.