The Bank of England

The Bank of England voted by a majority of 7-2 to hold its benchmark interest at a record low of 0.1% during its November meeting, and by a majority of 6-3 to leave its bond-buying programme unchanged, as policymakers weighed concerns over rising prices against the downside risks from slowing global growth and a potential upturn in UK unemployment following the end of the furlough schemes in September. The central bank also said that it would probably become necessary to increase rates over coming months in order to return inflation to the 2% target. Looking ahead, CPI inflation is now expected to peak at around 5% in April 2022, before falling back materially from the second half of next year, as supply disruption eases, global demand rebalances, and energy prices stop rising. At the same time, the UK unemployment rate is seen rising slightly in Q4 2021, while UK GDP is projected to get back to its pre-pandemic level in Q1 2022.