The Bank of England has kept the rate at 5.25% per annum

Following the results of today's meeting, the Bank of England left the key interest rate at 5.25%, confirming the preliminary forecasts of analysts and market expectations. 

8 out of 9 members of the Monetary Policy Committee voted to keep the rate, and only Swati Dingra, known for her soft stance, proposed a 25 basis point rate cut, repeating her opinion from the last meeting.

At the moment, the rate is at its highest level since 2008, remaining unchanged since September, after a series of increases at the previous 14 meetings. The central bank's management notes a decrease in inflationary pressure and a slowdown in wage growth, a key indicator of inflation.

Official data show that inflation in the country fell to 3.4% in February year-on-year, which is the lowest since September 2021. Core inflation also slowed to 4.5%. The Bank of England forecasts a further decline in inflation below 2% in the second quarter, followed by moderate growth in the second half of the year.

In a press release, it was noted that in order to achieve a steady approximation of inflation to the target level of 2%, it is necessary to maintain a sufficiently strict monetary policy. The Committee expressed its readiness to adjust the policy if necessary and stressed the importance of monitoring economic indicators, including the labor market and wage growth.

The next meeting of the Bank of England, scheduled for May 9, will be accompanied by the publication of updated economic forecasts. Most market participants assume that the rate cut may begin in August.