Interest Rates and Monetary Policy: Next Bank of England MPC Meeting

Catherine Alexander
Partner

On the 11th May 2023, the Bank of England’s Monetary Policy Committee (MPC) raised interest rates for the 12th consequtive time. Rates were increased by 0.25 percentage points to 4.5% by a vote of 7-2.

The next MPC meeting is scheduled for 22nd June 2023.

The MPC is increasing rates in response to rising inflation, at the last meeting although inflation had come down slightly, it was still well above the MPC’s 2% target. Currently, the inflation rate stands at 8.7%.

The MPC meets eight times a year and involve a discussion of the latest economic data from the Bank of England and what policies should be implemented to help the MPC achieve its aims (the primary mandate being to keep prices stable by making sure that inflation stays at 2%). In addition to publishing their interest rate decision following the meeting, an inflation report is also published after every other meeting.

Following the next meeting, the MPC will convene on the following dates for the remainder of 2023:

• 3rd August

• 21st September

• 2nd November

• 14th December

Falling inflation (albeit slowly) is a good sign as it shows the economy is slowly getting back on track. Forecasts are predicting that it is likely rates will be increased again, but we will have to wait to see how the MPC votes on the 22nd June, with the basis being on the prevailing economic situation at the time.

References: https://www.bankofengland.co.uk/monetary-policy

This article isn’t personal advice. If you’re not sure whether a course of action is right for you, ask for financial advice.