“With inflation back at target, the decision to keep interest rates on hold will provide obvious disappointment to those household and business borrowers struggling under the strain of the cumulative impact of 14 rate hikes.
“While the minutes struck a slightly more dovish tone, the lack of movement in the vote split towards loosening policy means an August interest rate cut is far from certain.
“Given that the UK has moved onto a milder inflationary trajectory, rate setters remain too circumspect over the likelihood of loosening policy, risking unnecessarily impeding the UK’s growth prospects.
“With loosening labour market conditions likely to help ease concerns over underlying price pressures, the case for an August interest rate cut remains strong.”
ENDS
Notes to editors:
About ICAEW
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