The BoE MPC voted to keep the Bank Rate unchanged at 5.25% at its February meeting. Six members of the MPC voted in favour of the decision, with two members preferring to raise rates and one member preferring to cut them. In comparison to the December meeting, in which six members voted to keep policy unchanged and three voted to increase rates, February’s meeting can be viewed as a marginally dovish shift by the MPC.
This was supported by updated inflation projections (see Chart 1). In November, the BoE expected inflation to fall back to its 2% target around the beginning of 2026. The February Monetary Policy Report brought that projection two years forward to Q2 2024.1