Boe Holding With A Looser Grip

The Bank of England held its Bank Rate at 3.75% as energy price pressures subsided below previous forecasts. The analyst expects no further rate hikes this year due to a softening labour market and economic weakness.

Key Takeaways

• 1.The Bank of England (BoE) maintained the Bank Rate at 3.75% with a 7-2 MPC vote.
• 2.Energy prices have fallen below the BoE's April 'Scenario A' assumptions, weakening the case for further rate hikes.
• 3.The analyst anticipates no further rate hikes this year given the anaemic economic environment and weakening labour market bargaining power.

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