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The rate has been holding at 5.25% since August 2023. If we see no movement at the next meeting in June, then it will have been a year without movement. The current rate is the highest for 16 years, but no the worst by a long way when it was 17% in 1979.

The voting

There was an entire committee of nine for the vote. Seven voted to hold at 5.25%, and two voted for a reduction to 5%. The positive, if you can see one, is that there were no votes to increase the rate from anyone, and there is a bit of movement to decrease.

MemberDirectionAmountAndrew Bailey (Governor)Hold5.25%Ben BroadbentHold5.25%Huw PillHold5.25%Megan GreeneHold5.25%Sarah BreedenHold5.25%Jonathan HaskelHold5.25%Catherine MannHold5.25%Swati DhingraDecrease5%Dave RamsdenDecrease5%

Inflation

Inflation has fallen from a high of 11.1% in October 2022 to its current level of 3.2%, which was seen in March this year. While this is very positive, the Governor of the Bank of England has recently said that although he was optimistic, more evidence of slowing price rises needs to be seen before consideration can be given to reducing interest.

Outlook

Analysts suggest that the first cut of 2024 is likely to arrive in June or August. Time will tell.