TechFlow news, on December 19, according to Jinshi reports, the Bank of England voted 6:3 to hold its benchmark interest rate at 4.75%, with three members unexpectedly supporting a 25 basis point rate cut. Governor Bailey emphasized a "gradual approach" to rate cuts but refused to commit to a specific timeline for reductions in 2025. Members favoring easing argued that weak demand could lead to an excessive output gap and forecasted medium-term CPI would remain well below the 2% target.
Analyst Irina noted that the Bank of England boldly maintained its gradualist guidance, suggesting a quarterly pace of rate cuts, contrary to market expectations. As a result, GBP/USD fell sharply, last quoted at 1.2604. The central bank stated it will continue with restrictive monetary policy until inflation sustainably returns to the 2% target.
