London — Even after UK inflation reached its objective of 2%, the Bank of England on Thursday decided to maintain unchanged interest rates at its June meeting, in line with market expectations.
It maintains the central bank’s key rate, which has been in place since August 2023, at a 16-year high of 5.25%.
Just as in the bank’s May meeting, two members of the Monetary Policy Committee supported a cut, while seven members voted to maintain.
Although the U.K. has seen a higher jump in inflation over the last two years, inflation statistics released on Wednesday showed headline price gains dropped to 2% in May, meeting the central bank’s target ahead of the U.S. and the euro zone.
Nonetheless, analysts note that the UK’s persistently high service prices and core inflation point to the possibility of continuous pressure from the top.
Source (CNBC)
