2023-09-21 12:33:43
The Bank of England (BoE) left its rates unchanged on Thursday, at 5.25%, marking a first pause since the start of its monetary tightening in December 2021 and thus following in the footsteps of the Fed which had left its rates unchanged the day before. The institution remained vague on its future monetary policy. Further tightening will be required if there is evidence of more persistent inflationary pressures, the BoE simply indicated.
The release of better-than-expected inflation data on Wednesday appears to have influenced his decision, while previously analysts were expecting yet another rate hike. “Year-on-year CPI inflation fell to 6.7% in August, 0.4 points below expectations» of the Committee during the previous BoE monetary policy meeting, the central bank underlined in its minutes. “There were increasing signs of some impact of more restrictive monetary policy on the labor market (…) and on the real economy more generally“, also informed the institution in its minutes.
The pound fell by 0.6% to 1.2273 dollars following the announcement of the BoE decision.
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