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Monetary policy committee

  • Bank of England chief economist ‘not trying to be a troublemaker’ on rates split

    Economics

    The Bank of England’s chief economist has warned fellow policymakers over the risk of becoming “complacent” towards the cost of living as he defends his recent calls to hike interest rates.  Huw Pill, a member of the central bank’s Monetary Policy Committee, has voted twice to increase rates to 4 per cent in the committee’s [...]

    Chief economist Huw Pill said "consistency" was key to the Bank of England's quantitative tightening programme (Photo by: Graeme Sloan/Bloomberg via Getty Images)
  • Interest rates next change ‘far more likely down than up’

    Economics

    Interest rates are set to be held on Thursday in what some analysts believe could be a split decision as two Bank of England officials could back a 25 basis point hike.  The Bank’s Monetary Policy Committee is widely expected to leave interest rates unchanged at 3.75 per cent, though some members could back a [...]

    The Bank of England's Andrew Bailey will be closely monitoring movements in long-dated bonds
  • Interest rates set to be held as inflation to remain ‘elevated’ despite Iran peace deal

    Economics

    Interest rates are expected to be left unchanged as Bank of England policymakers wait to find out whether the Iran war peace deal holds up.  The Bank’s Monetary Policy Committee (MPC) is set to keep interest rates at 3.75 per cent at a decision later this week. Its decision would suggest that the Bank is [...]

    For the first time in months, economists are unsure whether the Bank of England will cut interest rates.
  • Inflation expectations at record high in interest rates signal

    June 12, 2026

    Inflation expectations hit a record high in the second quarter of the year, which could rattle Bank of England policymakers and build the case for an interest rate hike.  The Bank’s joint survey with Ipsos found that, on average, households believe inflation will rise by 3.9 per cent over the next five years.  It was [...]

  • Bank of England’s Bailey: Interest rates hike may not be needed

    May 29, 2026

    The Bank of England may not raise interest rates in response to the Iran war and has already effectively tightened monetary policy by taking the prospect of future rate cuts off the table, governor Andrew Bailey has said. In a speech in Iceland, the central banking chief said that inflation is “likely to go higher” [...]

  • End quantitative tightening now

    May 26, 2026

    Ending active quantitative tightening is not monetary loosening. The Bank must stop adding avoidable pressure to the gilt market.

  • Top Bank of England officials warn Reeves against supermarket price cap

    May 20, 2026

    Senior Bank of England officials have warned that price controls on essential goods are not an effective long-term tool to lower the cost of living, after it emerged the Treasury was pushing supermarkets to commit to cap prices of consumer staples. Speaking at a Treasury Committee appearance, governor Andrew Bailey told MPs that controlling the [...]

  • It’s not the Bank of England’s job to support the Chancellor

    May 5, 2026

    the Bank of England's MPC is acting as if its role is to support the Chancellor and protect the real economy, rather than control inflation.

  • Twilight zone: Markets await ‘highly uncertain’ interest rates decision

    April 30, 2026

    City analysts are eagerly anticipating a “highly uncertain” Bank of England decision on interest rates that could swing prices in either direction.  The Bank’s Monetary Policy Committee is widely expected to hold interest rates at its upcoming decision at 12pm on Thursday, though analysts have warned that a vote split and hawkish messaging around the [...]

  • Housing stocks drag on FTSE as inflation woes build into Bank of England interest rates call

    April 28, 2026

    Fears about the impact of interest rates on the UK’s struggling economy echoed around the City into this week’s set-piece interest rate meeting at the Bank of England. A trio of Tuesday trading updates from London-listed firms with direct exposure to the housing market revealed rising costs.  The insight reverberated across an industry which depends on affordable mortgages [...]

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