Bank of England's Rate Cut Decision Was Close, Say Officials

Bank of England's Rate Cut Decision Was a Close Call, Officials Reveal

Bank of England officials Megan Greene and Clare Lombardelli indicated that the decision to cut interest rates by 25 basis points last week was a closely contested one. In remarks made on Monday, both officials acknowledged that their votes were finely balanced, with Greene and Lombardelli each stating that they had carefully weighed the decision before supporting the rate cut.

The officials suggested that if the Monetary Policy Committee (MPC) meeting had occurred a week later, after significant geopolitical developments like the U.K.-U.S. trade deal and easing tensions between the U.S. and China, their vote may have been different. They pointed out that these developments could have influenced their stance on the rate cut.

The Bank of England's rate cut was approved by a narrow 5-4 vote, with two members favoring no change in the policy rate, and two others advocating for a larger 50 basis-point reduction. This vote reflects a degree of uncertainty and varying views within the committee regarding the appropriate monetary policy amid evolving global economic conditions.