Review: BoE Keeps Rates on Hold, While the MPC Remains Split in Half

In this paper, we discuss:

• The BoE’s decision to hold Bank Rate, with the MPC split narrowly 5-4;
• Inflation expected to return to around 2% from April, reducing persistence risks;
• A downgraded growth outlook and rising unemployment increasing downside risks;
• Markets bringing forward easing expectations, with gilt yields and sterling falling.

Download PDF: BOE Review February 2026