Bank of England keeps interest rates steady at 5.25%

England – The Bank of England on Thursday kept interest rates steady at 5.25%, amid expectations that they will be reduced at a later date.

The Telegraph newspaper reported that it was voted by 7 votes to 2 in favor of keeping interest rates unchanged once morest the backdrop of low inflation and strong growth.

Bank Governor Andrew Bailey said he was “optimistic” that inflation would continue to fall in the coming months, as he noted that policymakers were closer to lowering the cost of borrowing.

Commenting on the decision, Bailey said: “We have received encouraging news on inflation and believe it will fall close to our 2% target in the next two months,” adding: “We need to see more evidence that inflation will remain low before we can From lowering interest rates. “I am optimistic that things are moving in the right direction.”

Dave Ramsden, the bank’s deputy governor, joined calls to reduce the cost of borrowing amid signs that inflation is now on a “steady downward path.”

The latest examination of the economy conducted by the Central Bank showed that Britain has recovered from the recession at the beginning of this year, achieving an estimated growth of 0.4% in the first quarter, indicating that inflation has likely fallen to its target of 2% in April, from 3.2% in March.

He stated that the rise in food prices would stabilize at approximately this level for the rest of the year.

Investors have raised their expectations that the bank will start cutting interest rates from August to June and reduce them to 4.75% by the end of the year.

Source: telegraph