BoE Interest Rate Decision Hinges on Inflation Outlook and Bond Sales

The Bank of England's Monetary Policy Committee (MPC) is set to hold interest rates at 3.75 per cent next week, but analysts expect another split vote on the inflation outlook.

Policymakers remain divided over the threat that energy prices pose to inflation, and this division could lead to a more nuanced decision on quantitative tightening (QT).

The BoE's stock of government bonds has decreased from £875bn to £490bn, sparking speculation that rate-setters might slow down or even halt active bond sales.