Hawks vs Doves: MPC will hold interest rates

The Bank of England is expected to hold interest rates on Thursday.

In the last year, the Bank of England has cut interest rates five times on the expectation that price rises were easing in the UK.

When inflation hit a 41-year high of 11.1 per cent in October 2022, policymakers at the Bank warned that its fight to battle inflation was “sacrosanct”.

The relentless spiralling of prices, accompanied by sobering media reports about how the cost of living crisis had left Britons destitute, sharpened minds at Threadneedle Street.

As Bank Rate hit a high of 5.25 per cent in mid-2023, rate-setters emphasised that its remit to get inflation down to two per cent was “clear” and “applies at all times, reflecting the primacy of price stability in the UK monetary policy framework”.

With inflation