BoE keeps key interest rate at 16-year high of 5.25% despite inflation fall | Banking
BoE keeps key interest rate at 16-year high of 5.25% despite inflation fall | Banking
 "Bank of England, England")
Pedestrians pass the Bank of England (BOE) in the City of London, UK. Photographer: Hollie Adams/Bloomberg
The Bank of England on Thursday kept its main interest rate at a 16-year high of 5.25 per cent, even though inflation has fallen to its target of 2 per cent.
In a statement, some policymakers on the bank’s nine-member Monetary Policy Committee voiced worries that some underlying measures of inflation, such as in the services sector, remain elevated, which could be stoked further if interest rates are cut too soon.
The decision, which was widely anticipated by economists, is likely to disappoint the governing Conservative Party ahead of the UK’s general election in two weeks time. A cut would have been seized upon by Prime Minister Rishi Sunak as positive economic news.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Jun 20 2024 | 4:57 PM IST
