The Bank of England has left interest rates unchanged at its November meeting, extending September’s pause.
The Monetary Policy Committee voted 6–3 to leave rates at 5.25%, the highest level in 15 years, as it continues its battle to bring inflation down to its 2% target.
But it left the door ajar for further rates increases, explaining the risks to inflation remain “skewed to the upside”.
“Monetary policy will need to be sufficiently restrictive for sufficiently long to return inflation to the 2% target sustainably in the medium term, in line with the Committee’s remit,” the BoE said in a statement.
The BoE expects UK GDP to have been flat in the third quarter, weaker than projected in its August report.
GDP is expected to grow by 0.1% in the fourth quarter, also weaker than projected previously.
The BoE expects CPI inflation to hit its 2% target by the end of 2025.
It added its forecasts are conditioned on a market-implied path for Bank Rate that remains around 5.25 until the third quarter of 2024 before declining gradually to 4.25% by the end of 2026, a lower profile than underpinned the August projections.
Three members of the BoE's Monetary Policy Committe - Megan Greene, Jonathan Haskel and Catherine Mann - voted for a rise to 5.5%.