Skip to main content

Bank of England keeps interest rates on hold

Policymakers still cautious on early cuts, although the first could yet come as soon as June.

21 March 2024

The Bank of England (BoE) shocked no one in their latest meeting on interest rate policy, holding at 5.25% for the fifth time in a row. Two of the members who previously called for rate hikes at February’s meeting now fall into line with the broader eight-member consensus advocating no change in policy, with one member still arguing for a rate cut.

Echoing the Federal Reserve’s more cautious outlook on inflation, the BoE seem not yet overly convinced they are at a point where cuts should be deployed. However, markets are pricing in a little over 80 basis points of cuts this year, with the first possibly coming in June. Inflation prints will have to come in shallow over the next few months for that eventuality and it is possible they will, although it is by no means a slam dunk.

Important legal information
The information in this document is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained in this document may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information. Past performance is not an indicator for the current or future development.

Charles Hepworth

Investment Director
My Insights

Related Articles

UK interest rates left unchanged at 5.25%

Julian Howard

Fed leaves interest rates unchanged, as expected

Julian Howard

ECB cuts rates as expected, despite sticky inflation

Julian Howard

Investment Blog