Bank of England vote to keep rates on hold

Bank of England vote to keep rates on hold

The Bank of England has, in a surprise move, voted not to raise interest rates in the UK. This dovish tilt was very much contra to market expectations in which investors had all but nailed on a 0.25% rate rise today. The overarching conclusion from the central bank was inflation was indeed moving well past their upper bound of 2% but the economic slowdown and falls in household incomes would act as a natural inflation pull down without the need for a rate hike. The BoE did add in that rates would have to rise at some point in 2022 and perhaps even in 2021 so all eyes are now on the December meeting.