BoE Holds Rates at 3.75% in 6-3 Vote; Pill, Greene, Mann Dissented for 4%
| Pair | Now | Since publish |
|---|---|---|
| GBPUSD | — | — |
| EURGBP | — | — |
| GBPJPY | — | — |
- BoE held rates at 3.75%, sixth consecutive hold.
- 6-3 vote split; 3 members sought 4% rate.
- MPC sees inflation rising, policy targets 2%.
The Bank of England’s (BoE) Monetary Policy Committee (MPC) is widely anticipated to maintain its benchmark interest rate at 3.75% following its decision later today. This would mark the sixth consecutive hold for the rate, which has been at this level since a 25-basis point cut in December last year. Economists, investors, and market pricing, with nearly 80% odds, align with this expectation, as the central bank reportedly seeks further evidence regarding inflation risks. Beyond the headline decision, market attention is focused on the MPC’s internal vote split, particularly whether it will remain 6-3 as seen in July, or narrow to 5-4. The subsequent release of the Meeting Minutes will provide further insight into the discussions that informed the outcome.
The Bank of England (BoE) held its Bank Rate unchanged at 3.75%, a decision reached with a 6-3 vote. Pill, Greene, and Mann voted to increase the Bank Rate to 4%. The Monetary Policy Committee (MPC) indicated that UK inflation is likely to rise further in coming quarters, with policy aimed at ensuring inflation returns sustainably to 2%. The MPC noted that the policy stance will depend on the scale and duration of the energy shock, and while there’s little evidence of material second-round effects in price and wage-setting, the risk increases with persistent or volatile energy prices.