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UK’s Bank of England holds rate at 4%, signals possible December cut
The Bank of England kept its Bank Rate at 4% and flagged a possible cut in December, citing stable employment and elevated inflation.
Bank of England’s Monetary Policy Committee voted 5-4 to hold its Bank Rate at 4%, while four members preferred a 0.25 % cut. The statement noted inflation remains elevated and employment stable, but signalled that the rate is “likely to continue on a gradual downward path,” opening the door to a cut in December. The decision follows global central-bank tightening and reflects readiness to pivot as growth remains fragile.
The market reaction saw modest sterling gains and a slight fall in short-term gilt yields.