CBI responds to Bank of England interest rate decision - February 2026

Alpesh Paleja, Deputy Chief Economist, CBI, said: 

“The Monetary Policy Committee was widely expected to hold fire in February. While inflation has continued to ease, the Committee remains concerned about the persistence of underlying price pressures. The latest decision is more about erring on the side of caution, rather than calling time on the easing cycle altogether.

“The MPC will now be watching data closely for more concrete signs of price pressures waning, particularly through slower pay growth and softer wage settlements. Encouragingly, many of the key indicators heading into this meeting had been moving in that direction. On balance, that still points to one or two further rate cuts later this year, something that the Committee implied pretty heavily.”