May 9, 2024
Interest Rate held at 5.25%
Interest rates have once again been held at 5.25%.
Table of contents
The Rate Has Been Holding at 5.25% Since August 2023
If we see no movement at the next meeting in June, then it will have been a year without movement. The current rate is the highest for 16 years, but it’s not the worst by a long way, considering it was 17% in 1979.
The Voting
There was an entire committee of nine for the vote. Seven voted to hold at 5.25%, and two voted for a reduction to 5%. The positive, if you can see one, is that there were no votes to increase the rate from anyone, and there is a bit of movement toward a decrease.
| Member | Direction | Amount |
|---|---|---|
| Andrew Bailey (Governor) | Hold | 5.25% |
| Ben Broadbent | Hold | 5.25% |
| Huw Pill | Hold | 5.25% |
| Megan Greene | Hold | 5.25% |
| Sarah Breeden | Hold | 5.25% |
| Jonathan Haskel | Hold | 5.25% |
| Catherine Mann | Hold | 5.25% |
| Swati Dhingra | Decrease | 5% |
| Dave Ramsden | Decrease | 5% |
Inflation
Inflation has fallen from a high of 11.1% in October 2022 to its current level of 3.2%, which was seen in March this year. While this is very positive, the Governor of the Bank of England has recently said that although he was optimistic, more evidence of slowing price rises needs to be seen before consideration can be given to reducing interest rates.
Outlook
Analysts suggest that the first cut of 2024 is likely to arrive in June or August. Time will tell.
Lee Wisener
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