The Bank of England kept its key interest rate at a record-low today after persistent weakness in inflation and wage growth reinforced the case for keeping emergency stimulus.
The Monetary Policy Committee’s decision also came against a backdrop of a weakening euro-region economy and tensions with Russia over Ukraine. It was the last before Scotland holds an independence referendum that threatens to break the U.K. apart.
While the MPC split last month, with two of the nine members voting to increase the rate by 25 basis points from 0.5 percent, others led by Governor Mark Carney said economic circumstances didn’t justify such a move. They cited the potential for “shocks” to the economy from a premature tightening.