PwC comments on September 2024 MPC meeting

Commenting on the Bank of England MPC meeting today at noon, Barret Kupelian, Chief Economist at PwC, said: 

“The Monetary Policy Committee maintained the Bank rate at 5%. Against the backdrop of a more active Federal Reserve, all eyes are now on the Bank of England’s next meeting in November. By then, the Committee will have clearer information on which to base its guidance, including refreshed historic economic data, the policy details and direction from the Autumn Budget, and the Committee's updated set of projections. 

“At this point in the economic cycle, what really matters for policymakers is how they influence the behaviours of businesses, households and wider financial markets, and in this regard we are seeing a gradual shift in people’s attitudes and perceptions. 

“The Bank's August/IPSOS Inflation Attitudes Survey showed that for the first time since the Global Financial Crisis of 2007/8, more people now think that interest rates are likely to fall in the next 12 months than rise (see chart). This belief, along with other big policy developments, is likely to feed into the public’s future spending decisions, influencing future economic activity.”