---
title: "The Bank of England holds interest rates steady but hints at more cuts in the future."
publisher: "Share Talk"
author: "sharetalk"
published: "2024-09-19T11:12:15+00:00"
modified: "2024-09-19T11:12:15+00:00"
date: 2024-09-19
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---

# The Bank of England holds interest rates steady but hints at more cuts in the future.

**Published:** September 19, 2024
**Author:** sharetalk
**Categories:** B2B, Blogs, Business & Support Services, Technology, Technology, Media & Telecoms
**Tags:** BANK, Bank of England, banking, BARC, Barclays, Benchmark, BoE, buyback, Chancellor, childcare, CME Group, consumers, Coverage, CS Venkatakrishnan, domestic, energy bill, England, FCA, Fed, Federal Deposit Insurance Corporation, Federal Reserve, FREE, FTSE 100, FTSE 250, FTSE100, futures, Goldman Sachs, household, HSBC, HSBC Holdings, Inflation, investors, Jeremy Hunt, Legal & General, lending, Lloyds Banking Group, London, midcap index, Monetary Policy Committee, NatWest Group, Ofgem, pandemic, price cap, Prime Minister, program, Prudential, Qatar, Regulators, Rishi Sunak, SEC, Serious Fraud Office, share, Share Talk, ShareHolders, silicon valley, Silicon Valley Bank, SIVB, SVB, The Bank of England, Traders, Treasury, UK, Underground, USA, Wall Street
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The Bank of England has kept interest rates unchanged, with Governor Andrew Bailey indicating that borrowing costs are likely to continue declining this year.

In an 8-1 vote, policymakers decided to maintain rates at 5%, as Bailey welcomed further easing in inflationary pressures since the Bank’s rate cut in August. However, officials expressed caution about cutting rates too quickly, citing a “tight” labor market.

Minutes from the Bank’s September meeting warned that current wage agreements are still incompatible with achieving the 2% inflation target. Although consumer prices, as measured by the CPI, rose by 2.2% in August, inflation is expected to increase later in the year due to a 10% rise in the energy price cap in October. The Bank noted that this would be somewhat offset by falling petrol and diesel prices.

Bailey stated, “Inflationary pressures have continued to ease since we cut interest rates in August. The economy has been evolving broadly as we expected. If that continues, we should be able to reduce rates gradually over time.”

This decision follows the US Federal Reserve’s half-percent rate cut on Wednesday and its indication of further cuts to come. The European Central Bank (ECB) has also cut rates twice since the summer. In August, the Bank of England lowered rates from 5.25%.

Bailey signaled a more cautious approach, emphasizing the need for more evidence that underlying inflation is slowing. “It’s vital that inflation remains low, so we need to be careful not to reduce rates too quickly or by too much,” he said.

This cautious stance was shared by the rest of the Monetary Policy Committee (MPC), with most members agreeing that, barring significant developments, a gradual easing of policy would be appropriate.

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