The Bank of England's "hawkish stance pauses," making a rate hike more likely at future meetings.

As expected, the Bank of England kept interest rates unchanged. However, the most noteworthy aspect of the meeting was the unanimous decision. It was anticipated that more dovish members might vote for a rate cut, with a 7-2 vote being more likely. The unanimous decision to maintain rates sent a hawkish signal, indicating a higher probability of a rate hike at future meetings. The Bank of England stated that a tighter policy stance would be necessary should a larger or more persistent shock occur, as they are concerned about a second round of impacts on wage and price-setting behavior. (Jinshi)