The Bank of England voted 5-4 to keep interest rates unchanged at 4%, as expected, at its meeting earlier today, Thursday, November 6th, for the second consecutive meeting. Four members voted for a 25 basis point cut.

The Bank’s interest rate report stated that inflation has peaked and continues to decline, with core inflation supported by the current restrictive monetary policy stance. The report indicated that monetary policy is designed to balance the risks surrounding the achievement of the 2% inflation target. It also noted that the constraints on monetary policy have eased with the interest rate cut, and the extent of further reductions will depend on inflation developments, which are expected to continue on a gradual downward trajectory.