The Bank of England announced the monetary policy decision for June 2024, as the monetary policy committee of the Bank of England voted by 7 votes to 2 on Thursday to keep the key interest rate at 5.25%, to remain at its highest level for 15 years for the seventh consecutive meeting.
The summary of the meeting minutes was as follows:
- Two members preferred to reduce the bank interest rate by 0.25 percentage points to 5%.
- For some policymakers, the decision today was finely balanced.
- This is because higher-than-expected service inflation reflects factors that will not push inflation up in the medium term.
- The labor market continues to decline, but remains relatively tight by historical standards.
- The main indicators of the continuation of inflation remain moderate, but remain high.
- It must be ensured that inflation will remain low before lowering interest rates.
- Monetary policy should remain restrained long enough to bring inflation back to the target level.
- The Bank of England remains ready to adjust monetary policy as required by economic data to return inflation to the 2% target sustainably.
- We will continue to closely monitor the indicators of persistent inflationary pressures and resilience in the economy as a whole.
The Bank of England also added this line in the statement:
As part of the August forecast round, the committee members will consider all available information and how this affects the assessment that the risks from the continuation of inflation recede.
