Bank of England: Skip November?

The Bank of England held Bank Rate at 4.00%, with a 7-2 vote split as expected, as Dhingra and Taylor backed a 25bp cut. The pace of quantitative tightening was reduced to £70 billion annually from £100 billion, though this implies a pick-up in active sales. To limit disruption at the long end, the MPC will sell fewer long-dated gilts. The Committee reaffirmed its “gradual and careful” approach to easing, but with disinflation stalling, the bar for further cuts has clearly risen. Skipping the November meeting would reinforce its commitment to the 2% inflation target and signal a need for more convincing inflation progress. It also shifts attention to Chancellor Reeves, with fiscal policy now in sharper focus ahead of the Autumn Budget.