The Bank of England keeps interest rates at 5% and announces another £100 billion bond cut

The Bank of England on Thursday left interest rates at 5% while voting to cut the amount of UK government bonds held by a further £100 billion over the next 12 months, a move that will have a significant impact on the government’s finances. The Monetary Policy Committee voted 8-1 to keep interest rates unchanged, with only outsider Swati Dhingra backing a further quarter-point cut. This decision came after the BoE last month cut borrowing costs for the first time since 2020.
Economists polled by Reuters had expected a 7-2 vote in favour of keeping interest rates unchanged, after a close 5-4 vote last month to cut the previous 16-year peak rate.