BoE hold rates unchanged at 0.5 per cent

FXStreet (Mumbai) – The Bank of England’s rate-setters voted 8-1 again to keep interest rates at their record low of 0.5 per cent in line with expectation. Ian McCafferty remained the lone hawk and preferred to increase Bank Rate by 25 basis points.

The MPC sets monetary policy in order to meet the 2% inflation target and in a way that helps to sustain growth and employment. The Committee also voted unanimously to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion.

All members agreed that, given the likely persistence of the headwinds weighing on the economy, when Bank Rate does begin to rise, it is expected to do so only gradually and to a level lower than in recent cycles. The actual path that Bank Rate will follow over the next few years will depend on the economic circumstances.

The Bank of England’s rate-setters voted 8-1 again to keep interest rates at their record low of 0.5 per cent in line with expectation. Ian McCafferty remained the lone hawk and preferred to increase Bank Rate by 25 basis points.

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