UK Monetary Policy Summary
It's among the primary tools the MPC uses to communicate with investors about monetary policy. It contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes. Most importantly, it discusses the economic outlook and offers clues on the outcome of future votes;
Source first released in Aug 2015;
- History
| Expected Impact / Date | Description |
|---|---|
| Nov 7, 2024 | |
| Sep 19, 2024 | |
| Aug 1, 2024 | |
| Jun 20, 2024 | |
| May 9, 2024 | |
| Mar 21, 2024 | |
| Feb 1, 2024 | |
| Dec 14, 2023 | |
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- UK Monetary Policy Summary News
From scotiabank.com|Nov 7, 2024As widely expected, the BoE lowered its policy rate by 25bps to 4.75% this morning, in an 8–1 decision that was accompanied by a cautious communique and Monetary Policy Report that were generally shy on guidance, as well as a classically dry Gov Bailey press conference. Last week’s UK Budget and Tuesday’s US elections have given the BoE a lot to digest so soon before today’s announcement and will likely continue to influence their thinking on whether to ease again in December. That aside, there are two rounds of jobs/wages, CPI, and ...
From think.ing.com|Nov 7, 2024Nobody will be very surprised to learn that the Bank of England has cut interest rates this month. Bank Rate has been taken a quarter point lower for the second time this year, which leaves it at 4.75%. Instead, everyone wanted to know what the Bank made of the latest budget. Big spending increases will, investors have assumed, reduce the scope of the BoE's rate-cutting cycle. Take a glance at the BoE’s new forecasts, and it’s tempting to conclude that the Bank agrees. Growth is higher and it expects inflation to be at 2.2% in two ...
From @PiQSuite|Nov 7, 2024post:
BOE'S BAILEY: **WE DO NOT HAVE A SPECIFIC LEVEL OF THE EQUILIBRIUM INTEREST RATE IN MIND **I DO NOT EXPECT INTEREST RATES TO RETURN BACK TO VERY LOW LEVELS BEFORE WE STARTED TO RAISE THEM, UNLESS THERE IS A VERY BIG SHOCK post: BOE GOV. BAILEY: UNCERTAINTY ABOUT THE UK LABOR FORCE PARTICIPATION ADDS TO UNCERTAINTY ABOUT THE NEUTRAL LEVEL OF UK INTEREST RATES. post: BOE GOV. BAILEY: WE DID REFLECT QUITE CONSIDERABLY ON THE ROLE OF MARKET RATE ASSUMPTIONS FOR THE LATEST FORECAST IN MPC DISCUSSIONS. post: BOE GOV. BAILEY: WE WILL SEE WHERE MARKET INTEREST RATES ARE AT THE DECEMBER MEETING AND JUDGE POLICY ACCORDINGLY. post: BANK OF ENGLAND'S BAILEY: I WILL NOT SPECIFY WHAT GRADUAL MEANS FOR RATE CUTS
From @financialjuice|Nov 7, 2024|1 commentpost:
BOE GOV. BAILEY: DISINFLATION FASTER THAN EXPECTED. post: BANK OF ENGLAND'S BAILEY: WE STILL NEED TO SEE SERVICES PRICE INFLATION COME DOWN MORE BROADLY TO KEEP CPI AT 2% post: BoE's Bailey: Slack Sufficient For CPI At Target In Medium Term post: BOE GOV. BAILEY: A GRADUAL APPROACH TO CUTTING RATES WILL HELP GIVE US TIME TO ASSESS IMPACT OF NICS RISE AND OTHER RISKS. post: BOE GOV. BAILEY: I DON'T THINK IT IS RIGHT TO CONCLUDE THAT PATH OF INTEREST RATES WILL BE VERY DIFFERENT DUE TO BUDGET.
From youtube.com/bankofenglanduk|Nov 7, 2024Our Monetary Policy Committee (MPC) decides what monetary policy action to take. The MPC sets and announces policy eight times a year (roughly once every six weeks). In this video, the MPC discusses the decisions taken in Nov 2024 and answers questions from the press.
From bankofengland.co.uk|Nov 7, 2024The Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. The MPC adopts a medium-term and forward-looking approach to determine the monetary stance required to achieve the inflation target sustainably. At its meeting ending on 6 November 2024, the MPC voted by a majority of 8–1 to reduce Bank Rate by 0.25 percentage points, to 4.75%. One member preferred to maintain Bank Rate at 5%. There has been continued progress in disinflation, particularly as previous external shocks have abated, although remaining domestic inflationary pressures are resolving more slowly. CPI inflation fell to 1.7% in September but is expected to increase to around 2½% by the end of the year as weakness in energy prices falls out of the annual comparison. Services consumer price inflation has declined to 4.9%. Annual private sector regular average weekly earnings growth has continued to fall but remained elevated at 4.8% in the three post: BOE: BUDGET LIFTS INFLATION BY JUST UNDER HALF A POINT AT PEAK BANK OF ENGLAND POLICYMAKERS VOTE 8-1 TO CUT RATES BY 0.25 PERCENTAGE POINTS TO 4.75% (REUTERS POLL: 7-2 VOTE TO CUT TO 4.75%) || BOE POLICYMAKER CATHERINE MANN VOTED TO KEEP RATES ON HOLD AT 5% BOE FORECAST SHOWS… post: BOE'S BAILEY: LIKELY INTEREST RATES WILL CONTINUE TO FALL GRADUALLY IF ECONOMY EVOLVES AS EXPECTED BOE FORECASTS GDP GROWTH IN 2024 +1% (AUGUST FORECAST: 1.25%), 2025 1.5% (AUGUST: 1%), 2026 1.25% (AUGUST: 1.25%), 2027 1.25%, BASED ON MARKET RATES BOE ESTIMATES PRIVATE SECTOR… post: Boe's: Can't Cut Rates 'Too Quickly Or By Too Much' - Rates likely to fall 'gradually from here' - Gradual Approach To Removing Restraint Appropriate - Maintains September Guidance On Interest Rates - Budget Lifts Inflation By Just Under Half A Point At Peak
From fxstreet.com|Nov 7, 2024Market consensus points to further easing by the Bank of England's (BoE) upcoming interest rate decision on Thursday. The BoE has held rates steady at 5.00% in the previous gathering, but shifting investor sentiment now suggests a possible 25-basis-point cut this week. At the bank’s September 19 meeting, policymakers stuck to quarterly rate cuts for now, with a November cut the most likely outcome. Regarding quantitative tightening, the committee voted unanimously to maintain the pace of reducing bond holdings by GBP 100 billion over ...
From msn.com|Nov 7, 2024The Bank of England is likely to cut interest rates on Thursday for only the second time since 2020 but the big question for investors is whether the BoE sends a signal about its subsequent moves after the government's inflation-raising budget.The BoE has had almost a week to chew over new finance minister Rachel Reeves' first set of tax and spending plans, which Britain's official budget forecaster thinks will raise inflation as well as economic growth next year. Consumer prices look to rise by 2.6% in 2025, according to the Office ...
| Released on Nov 7, 2024 |
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