- The Bank of England (BoE) is expected to hold interest rates at 3.75% as they have been since December.
- The last decision was 7-2 on the nine member committee to hold rates at 3.75%, with the two dissenters opting for a rate rise.
- Last month, the UK's rate of inflation fell to 2.6% in the year to June, but this is expected to rise in July due to increasing domestic energy prices.
- BoE policymakers last voted for a hold in June - though two of nine Monetary Policy Committee members did back a rise to 4%.
- Expectations in markets is for no change again, but perhaps a tick up in the number of committee members voting for a rise amid rising inflation linked to energy prices.
The Bank of England (BoE) is set to announce its interest rate decision at 12:00 BST, with expectations to hold rates steady at 3.75%.12
This rate has remained unchanged since December 2022, following a 7-2 vote by the Monetary Policy Committee (MPC) in June, where two members advocated for a rise to 4%.
Inflation in the UK fell to 2.6% in June, but is projected to rise in July due to escalating domestic energy prices. Market expectations suggest that while rates will likely remain unchanged, there may be an increase in the number of committee members supporting a rate hike due to these inflationary pressures.3
The BoE's current base rate stands at 3.75%, and the upcoming decision will reflect the ongoing economic challenges posed by fluctuating energy costs and inflation trends.
“The Bank of England will announce its latest interest rates decision at 12:00 BST, with expectations for rates to remain unchanged at 3.75%. However, rising domestic energy prices may influence a shift in voting among committee members, who last voted 7-2 to hold rates.”
