Bank of England

The UK economy is experiencing sluggish growth, with a cooling labor market. Although inflation has declined, it remains above the target level. Swati Dhingra, member of the monetary policy committee at the Bank of England (BOE), has elaborated on her decision to call for interest rates to be slashed, saying taking a "gradual" approach would still leave monetary policy as a drag on the economy this year.

The BOE Governor, Bailey, stated that while there has been a short-term uptick in inflation, there is reason to believe this rise will be transitory, and he emphasized that monetary policy should not overreact to factors that will dissipate over time.

On Thursday, the Bank of England (BOE) left its benchmark interest rate unchanged at 5.00%, in line with market expectations. The Monetary Policy Committee voted 8-1 in favor of the decision, a result that contrasts with Wednesday's 0.5 percentage point rate cut in the United States.

BOE Governor Bailey said at the Jackson Hole Economic Symposium on August 23 that he thought long-term inflation pressures were easing but further interest rate cuts would not be rushed.

On Thursday, the Bank of England (BOE) voted by a majority of 5-4 to reduce the Bank Rate by 25 basis points to 5%, marking the first rate cut since March 2020.