BOE Holds Rates Steady, Bailey Plays Down Hike Expectations

Andrew Bailey, Governor of the Bank of England (BOE), has downplayed expectations of a rate hike after the central bank held interest rates at 3.75%.

The Monetary Policy Committee (MPC) voted with three members in favor of a quarter-point increase, but Bailey emphasized that this does not indicate the BOE is edging towards a hike.

Despite concerns about the inflationary impact of the US-Iran war and its potential to drag on, the MPC said it remains alert to these risks.

The central bank's guidance states that it stands ready to act to prevent high inflation from lingering, but none of the six members who voted against a hike appeared close to switching sides at the meeting.