By Paul Hannon
DOW JONES–The Bank of England (BoE) has left its key interest rate unchanged. While it cut its forecasts for growth and inflation, it signaled a further cut if signs suggest wage growth is slowing to a pace that would help contain prices.
The British central bank left its key interest rate at 3.75 percent, in line with the Federal Reserve’s recent decision. In December it cut interest rates for the sixth time since August 2024.
However, the Fed signaled little rush to resume rate cuts. The British central bank, however, said its key interest rate would probably continue to fall. Investors believe a move at the March or April meetings is possible, but by no means certain.
“If all goes well, there should be scope for further cuts this year,” said BoE Governor Andrew Bailey.
The decision was once again the result of a close vote. Four of the nine members of the monetary policy committee wanted to cut the key interest rate to 3.50 percent, which would have been the lowest level in four years. Bailey again tipped the scales after supporting a cut in December.
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(END) Dow Jones Newswires
February 05, 2026 07:12 ET (12:12 GMT)
