BoE Keeps Rates Steady, Sees Further Loosening

The Bank of England held interest rates at 4.25% as expected on Thursday but said it was focused on risks from a weaker labour market and higher energy prices as conflict in the Middle East escalates.

- AGENCIES

The Monetary Policy Committee voted 6-3 to keep rates on hold. Deputy Governor Dave Ramsden joined Swati Dhingra and Alan Taylor to vote for a quarter-point reduction.

The three policymakers highlighted "a material loosening in labour market conditions" after official figures showed the highest unemployment rate since 2021 and weaker wage growth.

A Reuters poll of economists had forecast a 7-2 vote to keep rates on hold after the central bank cut borrowing costs last month for the fourth time since August 2024.