BOE's Vote Split Indicates Cautious Inflation Outlook

Dow Jones
07/30

1237 GMT - The Bank of England voted to keep interest rates on hold at 3.75%, with six members voting in favor while three members voted to raise rates by 25 basis points. "Three members in favor of a hike indicates that policymakers remain cautious about the inflation outlook," Hargreaves Lansdown's Alice Haine says in a note. Escalating tensions in the Middle East have pushed up energy costs and raised the risk of high global inflation. The BOE said that there is little evidence so far to show second-round effects of inflation. However, the BOE noted that the risks to the inflation outlook are tilted to the upside relative to the central projection in the July Monetary Policy Report.

 

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