Bank of England moves closer to first rate cut since 2020

The Bank of England took another step towards lowering interest rates, as a second official backed a cut and Governor Andrew Bailey said he was “optimistic that things are moving in the right direction”.

The BoE said on Thursday its Monetary Policy Committee voted 7-2 to keep rates at a 16-year high of 5.25 per cent after Deputy Governor Dave Ramsden joined Swati Dhingra in voting for a cut to 5 per cent.

Economists polled by Reuters had mostly expected another 8-1 split to keep rates on hold.