The Bank of England has tariffs that decreases even more in 2025, hanging in equilibrium

The Bank of England voted in favor of maintenance of interest rates on Thursday as it weighs sticky inflation with an uncertain growth forecast and job market.

The Committee on Monetary Policy (MPC) voted at 7-2 to maintain rates in a stable level, and two members of the deputies stand for a decline in a separate benchmark for 25 basic points. The decision of the September on detention of tariffs was widely, after the Central Bank last reduced the key interest rate by 25 basic points in August.

“The Committee is still focused on squeezing any existing or new sustainable inflation pressure to resist inflation to its 2% target in the medium period,” Boe said.

The main disinfection is usually ongoing, the Central Bank noted. The British pound was widely flat against the dollar after the $ 1,3638 level.

Boe reaffirmed that “the gradual and careful removal of the monetary policy remains appropriate.”

The latest MPC solution comes through the day after inflation data in the UK showed that there was no price rate in August in August, in August, And the consumer price index remains at 3.8%.

Boe said on Thursday, “it remains vigilant to risk that this temporary increase in inflation could extend additional pressure to increase wages and prices.”

The growth of the payment remains elevated, the bank noted, but it is expected that in recent months has fallen and is expected to slow down significantly, while the inflation of consumer prices has been widely equal in months.

“Exceeding the risks around medium-term inflation pressure remains visible in the Committee’s assessment,” the statement reads.

Boe predicts that inflation can reach as much as possible in September, double the 2% target before receded at the beginning of 2026.

Recent monthly growth data showed that in July there was a zero growth compared to the previous month, pushes concern that slowing is set. BOE also remembers the cooling jobs market and slowing the wage growth, which will alleviate the inflation pressure and can argue for further reducing the rate in the coming months.

The central step was also moving to slow down the pace by which it unloads the UK government bonds – known as quantitative delay – from £ 100 billion (136.2 billion) over the last 12 months to 70 billion pounds for the next year.

The process of reducing the number of gilding persisted by the Central Bank leads to tightening monetary policy. Investors of private bonds usually replace Boe when the Central Bank ships gilded, reducing the amount of cash in the economy.

The Central Bank said the vast majority of bonds will be redeemed and the bonds worth 21 billion. BOE was strengthened by political control over its asset sales program, as any losses it carried in the process signed by the UK government.

In March, the UK government’s welcome to the budget responsibility estimated the total losses from the asset sales program up to £ 104.2 billion.

There is also a broad uncertainty about the government budget on November 26, during which finance minister Rachel is most likely What she looks to balance books and reduce borrowing. In November, Bop on November – November 6, comes before the announced budget.

“Currently, Boe is faced with the dilemma, mitigating the risk level that feeds inflation, but high rates are straining the already weak economy. Add to the mix government, which should provide a budget that should connect a black hole that is governed by tens of billions, and the differences are becoming more complicated.”

“So far, the real actions may not be the bank, but with Westminster. Boe remains on the sidelines, waiting to find out what taxes and decisions on the budget go. Moves to this, it could make the fire,” he added in the comments.

Economists say Boe will want to see more evidence that services and basic inflation are on the way down the way to reduce further.

“Good news is that inflation data in August fixed some of the turningments we saw last month. The bad news is that the IPC can go a little further before reaching its peak,” Sanja Raja, the chief economist of Deutsche Bank commented on Wednesday.

Deutsche Bank hopes to see a little more pause when it comes to the next step Boe. George Brown, Senior economist Schroders, warned on Thursday that when markets are raising to reduce rates that are recovering next year, “we remain dubious that it would materialize.”

– Ganesh rao in CNBC contributed to this story.