Lates News

The Bank of England has kept interest rates unchanged at 4.25% in a vote that was more divided than expected. Against the backdrop of escalating geopolitical tensions, policymakers responded to signs of a slowdown in the labor market and softening economic growth. This decision keeps rates on track for a possible 25 basis point cut in August. Six out of the nine members of the Bank of England's Monetary Policy Committee voted to keep rates unchanged, while three members (external members Swati Dhingra and Alan Taylor, along with Deputy Governor Dave Ramsden) advocated for an immediate 25 basis point cut. "Rates continue to follow a gradual downward trend," said Bank of England Governor Andrew Bailey. "The current global situation is highly uncertain. In the UK, we are seeing signs of a slowdown in the labor market. We will closely monitor the impact of these signs on consumer price inflation." The committee noted that oil prices surged over 10% since Israel took military action, threatening to further increase inflation. The bank stated that it will "closely monitor developments and their potential impact on the UK economy."