BoE expected to hold rates with 7-2 vote as inflation undershoots

The Bank of England’s upcoming decision is widely expected to result in a 7-2 vote in favor of holding interest rates steady. Governor Andrew Bailey is not anticipated to lean into hawkish commentary.

According to the analysis, economic data does not yet justify higher rates. Headline inflation slowed to a 15-month low of 2.6% in June, coming in below the central bank’s own projections for three consecutive months.

This softer inflation print reduces the urgency for further tightening, keeping the policy stance on hold for now.