In updated forecasts, the BOE predicted inflation will be at its 2% target in April and warned of slowing growth and rising unemployment.
The Bank of England came within a vote of cutting interest rates and predicted inflation will fall below its target, a closer-than-expected decision that revived hopes of a move next month.
Governor Andrew Bailey was once again the swing voter in a 5-4 decision to leave rates unchanged at 3.75%, choosing to hold policy having cut at the last meeting in December. Bailey said in a statement that “there should be scope for some further reduction in bank rate this year.”
