United Kingdom Interest Rate

The Bank of England voted 8-1 to keep the Bank Rate at 4.5% during its March meeting, as policymakers adopted a wait-and-see approach amid stubbornly high inflation and global economic uncertainties. One member - Swati Dhingra - suggested a 25bps reduction to 4.25%. The bank highlighted that, given the medium-term inflation outlook, a gradual and cautious approach to further withdrawal of monetary policy restraint remains appropriate. CPI inflation increased to 3.0% in January, and while global energy prices fell, inflation is expected to rise to 3¾% by Q3 2025. Also, the MPC noted that global trade policy uncertainties and geopolitical risks increased, with financial market volatility rising.