BanRep paused rates at 9.50%, in a split decision, with a 4 to 3 in favour, with the minority voting for a 50bp cut. Previous votes have shown multiple tiers of votes and generally been less polarised (for instance, January showed five votes for one hold, one for 25bp and one for 50bp). The board highlighted the continued “[r]isk of inflationary pressures persisting, associated with fiscal challenges and uncertainty on the external front.” The board suggested inflation would be lower in the coming months, presumably as the start of year price indexation passes (see our CPI chart pack for more on inflation).
For more, including market takeaways, please see full note.