Interest Rates September 2023

The Monetary Policy Committee (MPC) of the Bank of England is tasked with formulating monetary policy aimed at achieving the 2% inflation target, while also promoting sustainable growth and employment. At the end of September, the MPC, by a majority of 5 to 4, decided to keep the Bank Rate at 5.25%. Four members of the committee expressed a preference for raising the Bank Rate by 0.25 percentage points to 5.5%.

Additionally, the Committee voted unanimously to decrease the amount of UK government bonds purchased for monetary policy purposes, which are funded by central bank reserves, by £100 billion over the coming year, reducing the total to £658 billion. The next review is scheduled for 2nd November 2, 2023.

Source: Bank Of England