Bank of England Keeps Rates at 0.5%

As political uncertainty grows as a result of last week’s election resulting in a “hung” parliament, the Bank of England announced that benchmark lending rates will remain at 0.5 percent. The Bank also noted the recent increase in prices and the potential for inflation, but has opted to maintain its quantitative asset purchasing targets unchanged until the economy shows greater strength.

The announcement comes in the middle of talks between David Cameron’s center-right Conservatives, and the smaller Liberal Democrats to form a coalition government. The Conservatives won the most seats in last week’s election, but failed to secure a majority win over the long-time Labour party.

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.