BoE holds rates as UK inflation hits eight-month high
Decision closer than expected as members unsure about implications of government budget
The Bank of England (BoE) has held its policy rate at 4.75% in a 6–3 decision, as inflation in the UK rose to an eight-month high.
Three members of the monetary policy committee (MPC) – Swati Dhingra, Dave Ramsen and Alan Taylor – today (December 19) voted for a 25 basis point cut while the rest voted to hold. This was closer than expected, as markets had predicted an 8–1 vote in favour of holding rates following the rise in inflation over recent weeks.
Year-on-year headline inflation rose to 2.6
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