Bank of England keeps rates steady in a 6-3 decision but avoids signaling future hikes, weakening policy backing for GBP.
The Bank of England left interest rates unchanged at its latest meeting, with a closer-than-expected 6-3 vote split. Governor Andrew Bailey dismissed speculation of an imminent hike, emphasizing the central bank’s neutral stance despite inflation concerns.
Analysts noted the vote included Catherine Mann, known for her volatile stance, while policymakers hinted at potential rate cuts if the Middle East conflict eases. Markets had priced in minimal tightening expectations, leaving the Pound with limited support.
The decision reinforces expectations that the BoE will delay further hikes as long as possible, prioritizing economic stability over aggressive tightening.