Bank of England Monetary Policy Summary, December 2024

Introduction

The Monetary Policy Committee (MPC) sets monetary policy to achieve the 2% inflation target while supporting growth and employment.

Approach

The MPC adopts a medium-term and forward-looking strategy to determine the necessary monetary stance for sustainably meeting the inflation target.

Recent Meeting

At the meeting concluded on 18 December 2024, the MPC voted 6-3 to maintain the Bank Rate at 4.75%. Three members advocated for a reduction to 4.5%.

Inflation Update

Since the last meeting, twelve-month CPI inflation rose to 2.6% in November from 1.7% in September. This increase exceeded previous expectations, primarily driven by higher inflation in core goods and food. Services consumer price inflation remains elevated.

Conclusion

The MPC continues to monitor inflation trends and economic conditions closely as it formulates policy going forward.