Bank of England Keeps Rates Steady Amid Wider Policy Split

The Bank of England (BoE) has held its main interest rate steady at 4.75%.

Economists polled last week predicted the BoE would reduce rates four times in 2025.

However, policymakers showed growing divisions over the need for rate cuts to address a slowing economy, Reuters reported.

Three members of the nine-person Monetary Policy Committee (MPC)—Deputy Governor Dave Ramsden and external members Swati Dhingra and Alan Taylor—voted for a quarter-point cut to 4.5%.

Economists surveyed by Reuters anticipated that only one MPC member would support a rate reduction.

BoE Governor Andrew Bailey emphasized the importance of maintaining a "gradual approach" to monetary policy.

"With heightened uncertainty in the economy, we cannot commit to when or by how much rates will be cut next year," Bailey stated.

Economists polled last week predicted the BoE would reduce rates four times in 2025. However, financial markets have tempered expectations, now projecting up to two cuts, as faster-than-expected wage growth reshapes forecasts.