The Bank of England unexpectedly voted to maintain interest rates of the United Kingdom at 5.25%, compared to 5.5% expected by the market, bringing an end to the longest successive period of rising rates in decades.
It was the first meeting for the BoE without a rate hike since November 2021. The voting was by the narrowest possible margin in 5-4 favour for a hold.
The decision came after inflation in the United Kingdom came in at 6.7% in August, showing a slight drop from the previous month and also below expectations. After the inflation report, the market raised the chance for the BOE to hold at 47%, up from a 20% probability to pause prior to the inflation report.
