The Bank of England
The Monetary Policy Committee of the Bank of England has announced that it has once again decided to keep the main interest rate at 5.25%, the highest since 2008 and the sixth unchanged rate in a row. In this latest meeting, seven committee members opted to maintain the rate unchanged, while two voted to cut it by a quarter point to 5%, marking a slight change from the previous meeting.
Inflation Trends and Economic Outlook
The financial institution highlighted that the inflation rate has experienced a decrease, standing at 3.2% in March, representing a two-tenths decrease from the previous month. Forecasts indicate that inflation is trending towards the 2% target in the short term, with the possibility of a slight increase in the second half of the year to around 2.5%, due to energy factors.
Despite the restrictive influence of monetary policy on the real economy, a more flexible labor market is observed, exerting pressure on inflationary pressures. The Bank of England estimates that the Gross Domestic Product (GDP) of the UK will have increased by 0.4% in the first quarter of 2024, with an additional growth of 0.2% projected for the April to June period.
Policy Stance and Future Adjustments
The institution reaffirms the need to maintain a restrictive monetary policy long enough to achieve sustainable inflation around 2% in the medium term. In response to any changes in economic indicators, the Bank of England is willing to adjust its monetary policy to ensure financial stability.
In summary, the Bank of England's decision to keep its interest rate at 5.25% reflects a cautious outlook towards current economic challenges, aiming to balance inflationary pressures with sustainable economic growth stimulation.
For more information on related topics, consider exploring:
Te puede interesar
Lo más visto
