Bank of England (BoE) Governor Andrew Bailey explains the decision to maintain the bank rate at 3.75% in a 6-3 vote split following the July monetary policy meeting and responds to questions from the press.
Key takeaways “UK economic activity subdued, labour market soft.” “No evidence of 2nd round effects but cannot draw too much comfort from this.” “We stand ready to adjust our stance as evidence evolves.” “Expect indirect inflation effects to add 0.5 percentage points to inflation in H2-2026.” “While household inflation expectations have fallen they remain elevated.” “Weak demand is limiting pass-through of higher costs to prices.” “Spare capacity in job market likely to reduce workers’ capacity to get pay rises.” BoE FAQs Author As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets