Bank of England Surprises No One By Holding Rates

The Bank of England has kept interest rates at a record low of 0.5%, despite signs that the UK economy is improving.

The decision was widely expected, given governor Mark Carney’s pronouncements that the Bank would not even consider raising rates until unemployment falls below 7%.

Even then, Mr Carney said a rate rise was not guaranteed.

The Bank’s Monetary Policy Committee (MPC) has kept rates at 0.5% since March 2009.

The Bank also left its quantitative easing (QE) programme of monetary stimulus unchanged at £375bn. It has remained at this level since July 2012.

With the unemployment rate at 7.6% and inflation, as measured by the consumer prices index, falling to 2.2% in October, economists believe there is little pressure on the Bank to raise rates at this stage, despite mounting evidence of a strengthening economy.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza