September 19, 2024 at 12:00PM
Prior 5.00%
Bank rate vote 8-0-1 vs 7-0-2 expected (only Dhingra dissented, wanting to cut by 25 bps)
Need to be careful not to cut rates too fast or by too much
Most MPC members think in the absence of material developments, a gradual approach to removing policy restraint would be warranted
Labour market continued to loosen but that it remained tight by historical standards
But data quality issues continued to be an area of concern i.e. LFS
“Range of views” on inflation persistence among those who voted to keep rates unchanged
Despite that, the current policy stance was judged to be appropriate
Monetary policy will need to continue to remain restrictive for sufficiently long
To monitor closely the risks of inflation persistence and will decide the appropriate degree of monetary policy restrictiveness at each meeting
Full statement
This article was written by Justin Low at www.forexlive.com.