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The Bank of England does not Change Interest Rates but does Hint that one will Soon

The Bank of England announced on Thursday that it would maintain interest rates following its May meeting, in line with expectations. The central bank noted that its current restrictive monetary policy was effectively managing inflation levels.

With a 7-2 vote, the Monetary Policy Committee decided to hold rates, with two members in favor of a cut. This marks a slight shift from the previous meeting, where only one member had advocated for a rate cut.

Despite this decision, the MPC expressed concerns about elevated indicators of inflation persistence, particularly highlighting a services inflation rate of 6% in March. Additionally, it mentioned potential “upside risks” to the near-term outlook stemming from geopolitical factors.

The bank emphasized its commitment to closely monitor upcoming data releases, with two consumer price index reports expected before the next meeting on June 20.

Source (CNBC)

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