The monetary policy of the Bank of England in November 2024 was as follows:
- The Bank Rate vote of 8-1 to 7-2 is expected.
- There has been continuous progress in reducing inflation, but inflationary pressures are slowly dissipating.
- Most of the remaining inflation persistence may dissipate quickly.
- The dynamics of determining wages and prices continues to normalize after global shocks recede.
- We need to make sure that inflation remains close to the target.
- Prices cannot be reduced too quickly or too much.
- There is still great uncertainty about the prospects for the labor market.
- The data is difficult to interpret and wage growth was higher than expected by the usual relations.
- A gradual approach to the removal of policy restrictions remains appropriate.
- Monetary policy will need to continue to be restrained long enough to eliminate the risks of inflation returning sustainably to the 2% target in the medium term.
- To closely monitor the risks of continued inflation and we will decide on the appropriate degree of restriction of monetary policy at each meeting.
The statements of Andrew Bailey, governor of the Bank of England, were as follows:
- We still need to see falling inflation in services more broadly.
- The shrinkage process is faster than expected.
- But we still need lower inflation in services on a larger scale.
- There may be a persistent continuation of wage inflation pressures in excess of expectations.
- We need to learn more about how the budget affects inflation.
- I don't think it's right to conclude that the course of interest rates will be completely different due to the budget.
