Bank of England maintain 5.25% for 5th consecutive time

On Thursday 21st March 2024, the Bank of England voted on holding interest rates at 5.25% in a majority vote.

For the fifth time in a row, the Monetary Policy Committee (MPC) have decided against increasing the base rate. This decision comes as a means to meet the 2% inflation target, and in a way that helps to sustain growth and employment. In the latest Monetary Policy Committee meeting, 8 members voted to keep interest rates unchanged whilst one voted to reduce the rate down to 5%. This is the first time since September 2021 that not a single member of the Bank of England’s Monetary Policy Committee voted to raise interest rates.

The prime minister’s official spokesperson indicated that with inflation dropping to 3.4%m real wages rising, mortgage rates starting to fall, there’s clean sign that the economy has turned a corner after the shock of the last few years.

Governor Andrew Bailey said “In recent weeks we’ve seen further encouraging signs that inflation is coming down. We’ve held rates again at 5.25% because we need to be sure that inflation will fall back to our 2% target and stay there.” He went on to add “We’re not yet at the point where we can cut interest rates, but things are moving in the right direction.”

 

There has been a sharp decrease in inflation in recent months, with the consumer prices index falling to 3.4% in February. Whilst still above the 2% target set by the Bank, it’s well below the peak reading of 11.1% in October 2022.

The Monetary Policy Committee will be holding their next meeting on Thursday 9th May 2024.

How can we help?

For more information on our service offering and how we can support your business’s financial plans during a turbulent economy, get in touch with us on 0161 633 2548. Alternatively, fill out one of our contact forms and one of our experts will be in touch with you. Our friendly team bring the creativity, ideas and support you need to ensure your business succeeds.

If you’d like to stay up to date on the latest industry news and career opportunities, follow us on LinkedIn!

You might like...

PMD Leasing at Wolves v Coventry

October 24, 2013
PMD Leasing’s Lee Schofield attended the Wolves v Coventry match at the Molineux Stadium on Saturday 19th October 2013 as a guest of Somers Totalkare

MPC maintain 5.25% base rate with majority vote

November 2, 2023
On Thursday 2nd November 2023, the Bank of England have again decided against another interest rate hike, continuing the trend of a stationary interest rate.