The Bank of England left rates unchanged

The Bank of England (BoE) remains unclear about its future monetary policy. Carlos Jasso/AFP via Getty Images

The Bank of England (BoE) left its rate unchanged on Thursday at 5.25%, marking the first pause since monetary tightening began in December 2021 and thus following the lead of the Fed, which left its rates unchanged the day before . .

The Institute remained uncertain about its future monetary policy. Further tightening will be required if there are signs of more sustained inflation pressures, the Bank of England said simply. The pound fell 0.6% to $1.2273 after the Bank of England’s decision was announced.

The release of better-than-expected inflation data on Wednesday appears to have influenced his decision, although analysts had previously expected another rate hike. “Consumer price index inflation for the year fell to 6.7% in August, 0.4 points below expectations” of the committee during the Bank of England’s previous monetary policy meeting, the central bank also stressed in its minutes.

“There are increasing signs of some impact of more restrictive monetary policy on the labor market (…) and on the real economy as a whole,” the institution’s minutes also said. The Swiss National Bank (SNB) also favored the status quo on Thursday, in contrast to the European Central Bank and the central banks of Sweden and Norway, which raised their rates by 0.25 percentage points during their latest meetings.

Source: L Orient Le Jour

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