Bank of England Keeps Policy Rate at 3.75% as Expected

MT Newswires Live09-17

The Bank of England held its policy rate at 3.75% for the sixth consecutive meeting, in line with market expectations.

Bank of England's rate decision was approved by a 6-3 vote, unchanged from the prior meeting. Monetary Policy Committee members Ge Lin, Mann and Chief Economist Pill voted for a rate hike.

Bank of England Governor Bailey said if the Middle East conflict is prolonged and the risk of second-round effects increases, monetary policy may need to tighten.

BANK OF ENGLAND'S MPC voted 9-0 to gradually unwind QT at an average pace of £46bn a year through 2034. The Bank's market survey had expected a 2026/27 run-off pace of £50bn.

Bank of England's quantitative tightening (QT) exit plan will include active sales of £20 billion a year of UK gilts while allowing other gilt holdings to run off at maturity. A Bank of England market survey shows participants expect active gilt sales of £19.5 billion in 2026/27.

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