2023.11.0212:26:00UTC+00BoE Stands Pat On Rates

The Bank of England left its benchmark interest rate unchanged for the second straight meeting on Thursday.

The Monetary Policy Committee voted by a majority of 6-3 to maintain the Bank Rate at 5.25 percent. Three members sought a quarter point hike.

The bank had raised the rate by a cumulative 515 basis points over the current tightening cycle that began in December 2021. The committee said monetary policy is likely to need to be restrictive for an extended period of time. "Further tightening in monetary policy would be required if there were evidence of more persistent inflationary pressures," the bank said.

MPC members Megan Greene, Jonathan Haskel and Catherine Mann said an immediate increase in the interest rate was necessary to address the risks of more deeply embedded inflation persistence and bring inflation back to target sustainably in the medium term.

The economy is projected to grow only 0.1 percent in the fourth quarter, weaker than projected previously. The bank forecast inflation to return to the 2 percent target by the end of 2025. Inflation is projected to fall below the target thereafter, as rising degree of economic slack was expected to reduce domestic inflationary pressures.