The Bank of England (BOE) announced in its latest monetary policy statement to keep interest rates at 5.25% unchanged to ensure inflation returns to target。Despite inflation falling to 4%, it is still twice the BoE target。This shows that the Bank of England has maintained a certain balance in promoting economic growth and employment while trying to curb inflation.。

Over the past two years, the Bank of England has gradually raised interest rates to curb inflation.。The move appears to be working, as the country's inflation rate has fallen from a peak of 11% in 2022 to 4% in December 2023.。However, inflation is still above the Bank of England's 2 per cent target and further measures are needed to ensure a sustained reduction.。

The Monetary Policy Committee (MPC) decided by a 6-3 vote to keep the bank rate at 5.25%。Despite the fact that two members supported raising the interest rate to 5.5%, and one member advocated lowering interest rates to 5%。Based on the path implied by the market, the MPC predicts that bank rates will fall to about 3% at the end of the forecast period..25%。

Globally, GDP growth remains weak, but activity in the US is stronger。Inflationary pressures ease in eurozone and US, wholesale energy prices fall sharply。However, risks remain due to tensions in the Middle East and the possibility of disruption to shipping in the Red Sea.。

In the UK, GDP growth is expected to gradually improve, making up for the drag from past interest rate increases.。Although the labor market remains historically tight, the unemployment rate is expected to rise slightly.。The MPC expects CPI inflation to fall temporarily to 2% in 2024 before rising slightly towards the end of the year.。

The MPC expects CPI inflation to reach about 2 by the end of the year..75%, remaining above target for most of the forecast period, mainly due to domestic inflationary pressures。However, the risk of this forecast is upward sloping, mainly due to geopolitical factors。Inflation is expected to stabilize at 2 after two years.3%, dropping to 1 after three years.9%。

MPC highlights need to maintain tight monetary policy to sustainably meet 2% inflation target。This stance will be adjusted for changes in economic data and closely watched for inflationary pressures and overall economic resilience.。

In terms of voting and operational considerations, six MPC members voted to maintain the bank rate at 5.25%, while opinions differ on raising or lowering interest rates。Total assets for monetary policy purposes amounted to £738 billion。

Overall, the Bank of England is committed to meeting its inflation target, balancing economic growth with the need to control inflation.。The MPC's decision reflects a cautious approach in a complex economic situation and stands ready to make adjustments based on new data.。