Bank of England's "Hawkish Pause" Signals Greater Possibility of Rate Hikes in Future Meetings

Odaily The Bank of England kept interest rates unchanged as expected. However, the most notable aspect of this meeting was that the final decision was unanimously agreed upon. Previously, there were expectations that more dovish members might vote for a rate cut, with a 7-2 vote in favor of holding rates being more likely. But the decision to keep rates unchanged was ultimately unanimous, sending a hawkish signal that indicates a greater possibility of interest rate hikes in future meetings. The Bank of England stated that if there are larger or more persistent shocks, a tighter policy stance would be required, as they are concerned about potential second-round effects on wage and price-setting behavior. (Jin10)