The Building Cost Information Service (BCIS) is the leading provider of cost and carbon data to the UK built environment. Over 4,000 subscribing consultants, clients and contractors use BCIS products to control costs, manage budgets, mitigate risk and improve project performance. If you would like to speak with the team call us +44 0330 341 1000, email contactbcis@bcis.co.uk or fill in our demonstration form
Published: 19/09/2024
The Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 8 – 1 to maintain Bank Rate at 5% at its September meeting.
One member of the committee voted to reduce the base rate to 4.75%.
In setting out the context to the vote, the MPC said: ‘Monetary policy decisions have been guided by the need to squeeze persistent inflationary pressures out of the system so as to return CPI inflation to the 2% target both in a timely manner and on a lasting basis. Policy has been acting to ensure that inflation expectations remain well anchored.’
Reacting to the news, Dr David Crosthwaite, Chief Economist at BCIS, said: ‘It’s no surprise that the base rate has not changed today. Following the latest inflation data, most economists had predicted that rates would remain at 5%.
‘However, economic growth is flatlining and investment is stalling so, at some point, the cost of borrowing will need to come down to stimulate growth.
‘We will have to see what happens in November when the next decision is due. That will also be post-budget so by then we should have a good idea of the direction of travel for the wider economy.’
The MPC’s next vote will be published on 7 November 2024.
To keep up to date with the latest industry news and insights from BCIS register for our newsletter here.
