Review: BoE Cuts Rates With a Highly Divided MPC, and Makes the Pace of Further Easing More Uncertain

by Brunello Rosa and Nato Balavadze

In this paper we discuss:

• The BoE’s assessment of the UK economy, whose growth remains subdued;
• The decision to cut rates, with a highly divided MPC, which was forced to a second vote;
• The upward revision to the inflation outlook over the forecast horizon, and to growth in 2025;
• The “hawkish” market reaction, given the divided MPC.

Download PDF: BoE Review August 2025