Bank of England left policy rate unchanged


Lerato Khumalo

In the BoE statement, it was stated that 7 of the members voted to keep the policy rate constant at 5.25 percent, and 2 voted to reduce it by 25 basis points to 5 percent.

In the statement, it was noted that headline inflation decreased from 3.2 percent annually to 2 percent in May, which was close to the estimates in the monetary policy report in May.

In the statement, it was stated that indicators regarding short-term inflation expectations continued to follow a moderate course, and that inflation was expected to rise slightly in the second half of this year due to the base effect of the decrease in energy prices last year.

In the statement, it was reminded that the general elections to be held in the country on July 4th had no effect on the bank’s decision, and that the decision was made, as usual, on the basis of the issues deemed necessary to achieve the 2 percent inflation target in the medium term in a sustainable manner.

The BoE’s decision to keep its policy rate steady follows the European Central Bank’s (ECB) decision to start cutting interest rates earlier this month.