The Bank of England kept its base rate unchanged at 4.75%
The Bank of England has kept the interest rate at 4.75% as expected, but the voting result was 6 to 3. Governor Bailey stated that a "gradual approach" to future rate cuts is still the right course, and he could not promise when or how much rates would be cut in 2025. The presence of three people favoring a 25-basis-point rate cut was somewhat unexpected, as they believe the risk of a large output gap due to weak demand, and that CPI will be well below 2% in the medium term. The GBP/USD exchange rate fell in response, last quoted at 1.2604.
