Deep Tide TechFlow News, December 19, according to Jinshi reports, the Bank of England voted 6 to 3 to maintain the benchmark interest rate at 4.75%, with three members unexpectedly supporting a 25 basis point cut. Bank Governor Bailey emphasized that a 'gradual approach' will be taken for rate cuts but refused to commit to a specific timeline for rate cuts in 2025. Members supporting the rate cut believe that weak demand could lead to a significant output gap and expect mid-term CPI to be well below the 2% target.
Analyst Irina pointed out that the Bank of England boldly insists on a gradual guidance, implying a quarterly pace of rate cuts, which is inconsistent with market expectations. As a result, the British pound fell against the US dollar, now reported at 1.2604. The central bank stated that it will continue to maintain a restrictive monetary policy until inflation sustainably returns to the 2% target.