Bank of England holds rates at 5.25% in final pre-General Election decision

Despite return to CPI target

Cristian Angeloni
clock • 2 min read

The Bank of England’s Monetary Policy Committee has opted to hold rates at 5.25% for the seventh time in a row today (20 June).

Two MPC members, Dave Ramsden and Swati Dhingra, voted again for a 25 basis points cut to 5%, against a majority of seven, who opted to hold rates. UK inflation returns to 2% target but June BoE cut remains unlikely The move follows positive inflation data for May from the Office for National Statistics, which revealed on Wednesday (19 June) that the Consumer Prices Index (CPI) fell back to 2% for the 12 months to May 2024 – reaching the BoE's inflation target. The most concerning data, however, included core CPI, which stood at 3.5% last month, and services inflation at 5.7%, whil...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Bank of England halts interest rate cuts amid persistent inflation

Bank of England halts interest rate cuts amid persistent inflation

As priced in by markets

Sorin Dojan
clock 20 March 2025 • 2 min read
UK labour market stagnates and shows 'no signs of breaking'

UK labour market stagnates and shows 'no signs of breaking'

Wage growth still 'too sticky'

clock 20 March 2025 • 2 min read
Federal Reserve holds rates steady as inflation 'remains a primary risk'

Federal Reserve holds rates steady as inflation 'remains a primary risk'

Trump volatility causing future uncertainty

Linus Uhlig
clock 20 March 2025 • 2 min read
Trustpilot