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March 20, 2025BANK OF ENGLAND MONETARY POLICY The Monetary Policy Committee (MPC) of the Bank of England voted to maintain the Bank Rate at 4.50%.
Since last MPC meeting, global trade policy uncertainty has intensified. New information has been mixed, but the expectations are in line with the February Monetary Policy Report. CPI inflation has increased to 3.0% in January 2025, up from 2.5% in December 2024. Inflation in goods and food prices had more than offset the decline in services prices. Energy prices remained higher than last year and CPI inflation was still projected to rise to around 3.75% in Q3 2025.
UK GDP growth estimates have been slightly stronger than anticipated in February Monetary Policy Report, but business survey indicators generally suggest weakness in growth. The labour market has softened and is more balanced, while job vacancies had not weakened to the same extent.
The Committee would continue to monitor closely the risks of inflation persistence and what the evidence might reveal about the balance between aggregate supply and demand in the economy. Monetary policy would need to continue to remain restrictive for sufficiently long until the risks to inflation returning sustainably to the 2% target in the medium term had dissipated further. The Committee would decide the appropriate degree of monetary policy restrictiveness at each meeting.
The next scheduled monetary policy meeting will be on May 8, 2025.
Source: Bank of England, Monetary Policy Summary, March 2025
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