Bank of England (BoE): Key Dates and Expectations

The Bank of England (BoE) has a crucial role in shaping the UK economy, particularly through its Monetary Policy Committee (MPC) actions. The MPC sets the UK’s base interest rate and other key monetary policies to meet the government’s inflation targets.

Bank of England Logo
Bank of England (BoE) logo

Bank of England Monetary Policy Committee meeting dates

  • 1 February (with Monetary Policy Report)
  • 21 March (with Monetary Policy Report)
  • 9 May (with Monetary Policy Report)
  • 20 June (with Monetary Policy Report)
  • 1 August (with Monetary Policy Report)
  • 19 September (with Monetary Policy Report)
  • 7 November (with Monetary Policy Report)
  • 19 December (with Monetary Policy Report)

Last BoE MPC Meeting’s Decision

At the last MPC meeting, which concluded on 9 May 2024, the committee decided to keep the base interest rate at 5.25%. This decision was made as part of the BoE’s efforts to combat inflation, which has been a significant concern over the past months.

Forecast Bank of England base rate

All eyes are on the upcoming MPC meeting on 20 June 2024, where there is speculation about a potential interest rate cut. The UK inflation rate has shown signs of slowing, and the Consumer Prices Index (CPI) currently sits at 3.2%, slightly higher than expected. This follows recent higher-than-expected UK wage growth and stronger-than-anticipated GDP figures, suggesting the UK economy is holding up better than many expected.

Markets anticipate potential rate cuts later in the year, with many economists predicting August as a more likely date for the first cut rather than June. The next set of inflation data, due on 22 May, will be crucial in guiding the MPC’s decision.

What is the MPC of the Bank of England?

The Monetary Policy Committee (MPC) of the Bank of England meets regularly to decide on the UK’s base interest rate and other monetary policies. The MPC’s main goal is to achieve the government’s inflation target, which is currently set at 2%. The committee meets eight times a year, and its decisions have wide-ranging implications for the UK economy.

Composition of the MPC

The MPC is composed of nine members:

  • The Governor of the Bank of England
  • Three Deputy Governors (for Monetary Policy, Financial Stability, and Markets & Banking)
  • The Bank’s Chief Economist
  • Four external members appointed by the Chancellor of the Exchequer

Each member has one vote, and the Governor votes last, which can be decisive in the case of a tie.

What Happens at the MPC Meetings?

MPC meetings span three days and involve comprehensive discussions on the latest economic data. On the first two days, members review reports from Bank staff and debate the appropriate monetary policy response. On the third day, they vote on the interest rate and other measures, with the decision announced the following Thursday at 12 pm (UK time). Every other meeting is accompanied by an inflation report.

Monetary Policy Committee meetings Process
Monetary Policy Committee meetings Process (source: Bank of England)

Related articles

Bank of England (BoE): Key dates and next meeting

European Central Bank (ECB): Key dates and expectations

FAQs

When is the next BoE meeting?

The next BoE meeting will be June 20, 2024

When is the BoE going to decrease interest rates?

Due to the current economic outlook, the BoE is expected to decrease interest rates before the end of 2024. However, this has not been decided yet due to the current inflation reports.

What are base rate hikes or cuts, and why do they matter?

Rate hikes (increases) or cuts (decreases) are tools the BoE uses to control inflation and stimulate or cool the economy. They significantly impact loans, mortgages, and the overall economic growth of the UK.

Who is the current chairman of the Bank of England (BoE)?

Andrew Bailey has been the governor of the BoE since 2020.

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