BoE Maintains Rates in Dovish Narrow Vote

The Bank of England kept the Bank Rate at 3.75% in a dovish 5-4 vote, signaling room for rate cuts as inflation is expected to hit the 2% target by spring.

Key Takeaways

• 1.The Bank of England maintained the Bank Rate at 3.75% in a narrow 5-4 vote, a split more dovish than market expectations.
• 2.BoE GDP growth forecasts for 2026 were revised downward to 0.9% from 1.2% previously.
• 3.Inflation is projected to reach the 2% target by spring (April), significantly earlier than prior forecasts.

Table of Contents

• MPC rate decision
• Economic forecasts
• CPI paths:
• Market rates and policy stance:
• GDP outlook:
• Unemployment rate:
• Wages:
• Minutes
• Press Conference
• Natixis CIB Research
• Disclaimer

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