BoE delivers a hawkish rate cut, while concerns about second-round effects persist
The Bank of England (BoE) Monetary Policy Committee (MPC) voted by a narrow margin of 5 to 4 to reduce Bank Rate by 25 basis points (bps) to 5.0%. The fading impacts of past external shocks and a normalisation in wage and price setting behaviour explain the decision to ease monetary policy. In this Macro Flash Note, Economist Joaquin Thul delves further into these factors.
