The Central Bank of England decided to vote on raising interest rates by 25 basis points in its meeting today, issued moments ago, to reach 5.25%, as expected in a vote by a majority of members 6-3, as two members preferred to increase interest rates by 50 basis points, and one member preferred to keep them unchanged.

The interest statement issued by the bank stated that after the growth of the gross domestic product by 0.2% in the first half, members expect similar growth in the short term, while there are still some indications of a decline in the labor market. The inflation rate decreased from 8.7% in May to 7.9% in June and was in line with expectations, but it is still above the target of 2%.

It is expected to decrease significantly and may reach 5% by the end of this year due to lower energy prices, and it may return to its target by the quarter. The second of the year 2025.

The Monetary Policy Committee will continue to closely monitor indicators of persistent inflationary pressures and resilience, and if it sees more persistent pressures, further tightening of monetary policy will be required, and the Bank will ensure that the interest rate remains constrained enough for a long enough period to return inflation to the target in a sustainable manner.