Two leading economic factors the BoE considers when deciding whether to cut rates are service inflation and wage growth. Job losses and economic output also play a role.
According to Bank governor Andrew Bailey, the Bank is waiting to see proof of inflation coming under control before they can cut rates.
The BBC states that the votes of the nine-member committee can give a clue about when cuts will happen, changing expectations in financial markets and, in turn, changing the actual mortgage and savings rates. In this case, the Bank voted 8 to 1 to hold interest rates. One member voted to reduce the rate down to 5%.
Martin Weale, a professor of economics at King’s College London, said: “A gradual build-up of people voting for a cut is often an indication that one is to come”.
The BBC reports: “After inflation fell to its lowest level in two and a half years last month, economists expect rates to start falling in June.”
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