The Bank of England's Monetary Policy Committee voted six to three to hold the Bank Rate at 4.75% at its December 2024 meeting — the final scheduled gathering of the year — as policymakers concluded that elevated services inflation ruled out an immediate further reduction in borrowing costs. The decision and full voting record were published on the Bank of England's official website following the meeting.
The three dissenters — Swati Dhingra, Dave Ramsden and Alan Taylor — each voted for a 25-basis-point cut. The majority, however, pointed to services inflation running at 5.0% as evidence that domestically-generated price pressures remained too persistent to support another easing step at this juncture.
SERVICES INFLATION
Twelve-month CPI inflation had risen to 2.6% in November from 1.7% in September, owing in large part to stronger core goods and food inflation, and the Committee said a gradual approach to removing monetary policy restraint remained appropriate.
Financial markets had priced in little chance of a December cut ahead of the meeting. The decision to hold was in line with economists' expectations, although the three votes for a cut were more than most had forecast.
COMMITTEE SPLIT
The three votes for a cut showed a split within the committee.
The hold at 4.75% means the Bank of England closes 2024 without delivering a rate reduction at the year's final opportunity. The MPC noted it would continue monitoring incoming data on wages, services prices, and the broader UK economic outlook as it approached its 2025 decision calendar.