BoE Froze Bank Rate at 4.75% as Services CPI Stayed Sticky. Bailey Defends Plateau.
The Bank of England held its Bank Rate at 4.75% on Thursday, with Governor Bailey warning services inflation and wage growth delay aggressive policy easing.
News commentary and opinion. Not financial advice.
What happened
The Bank of England Monetary Policy Committee voted 8 to 1 to maintain Bank Rate at 4.75%.
One dissenting committee member voted for an immediate 25 basis point policy reduction.
In its quarterly Monetary Policy Report, policymakers noted UK services inflation held stubbornly at 4.9%.
Private sector wage growth remained elevated near 4.8% during the preceding quarter.
Governor Andrew Bailey stated that borrowing costs must stay restrictive until inflation risks clear.
Bailey highlighted that recent domestic fiscal measures create two-sided risks to inflation forecasts.
Benchmark 10-year UK gilt yields rose four basis points to touch 4.45%.
Spot GBP/USD traded defensively near 1.2980 as broad dollar strength limited sterling demand.
Primary source: Bank of England Monetary Policy Summary and Minutes, November 2026
The roast
Lombard Street commentators spent autumn forecasting that Threadneedle Street would rush to cut rates.
Our view of the British inflation landscape is less optimistic.
A central bank cannot claim victory over inflation while services costs run near 5%.
Governor Bailey chose institutional caution over satisfying vocal real estate lobbies.
Brokers hyping cheap mortgage plays ignore the reality of persistent UK wage demands.
Holding sterling against the dollar remains costly while US Treasury yields hold above 5%.
Traders attempting to front-run rate cuts got caught by higher gilt yields once again.
The Bank of England understands that cutting rates too soon risks reigniting price spirals.
Patience remains essential when trading central bank policy announcements.
Why it matters to traders
- The yield differential between London and New York continues keeping sterling under constant pressure.
- Consult our central banks guide to evaluate how monetary policy divergence drives currency valuation.
- High-impact policy statements from the Bank of England create sharp bid-ask spread spikes.
- Check execution metrics in our slippage and latency guide before trading London announcements.
- Read official policy minutes directly on the Bank of England portal.
- Protect account balances during rate decision volatility using our position sizing playbook.
- Avoid margin liquidation during sudden currency swings with our leverage and margin guide.
Disclaimer: This is news commentary and reflects the opinion of ForexRoasted. It is not financial or investment advice. Trading CFDs and Forex involves substantial risk and is not for every investor.