Bank of England maintains interest rates at 4.5%

The Bank of England has decided to keep interest rates steady at 4.5%. This decision comes with some caution about the future direction of rates. Recently, Catherine Mann, a member of the committee, changed her view and supported a faster rate cut in February due to concerns about jobs. However, she did not vote for any cuts this time. Swati Dhingra was the only member to push for an immediate cut. The committee’s external members tend to be more open to changes than the core members, including Governor Andrew Bailey. The split in votes doesn’t clearly indicate what future decisions may be. Overall, there are signs that the committee might be becoming more cautious again. Since Mann expressed her job market worries in February, recent data shows that employment remains stable. The number of layoffs has not increased, even though some surveys indicate that companies are hiring less as tax increases approach. The Bank of England admits that unexpected changes in demand could lead to quicker rate cuts. The weekly reports on layoffs will be important to monitor as the next meeting approaches in May. Currently, there are no signs of rising job losses.