BoE Keeps Rate at 0.5%

UK interest rates have been held at 0.5% again by the Bank of England’s Monetary Policy Committee.
Rates have now remained on hold for more than six years and the Bank is not expected to raise them until next year.

Analysts say the Bank is under no pressure to raise rates yet with inflation near record lows.
Inflation, as measured by Consumer Prices Index, was all but flat at 0.1% in May. That was up from -0.1% in April but well below the Bank’s 2% target.

However, in the Bank of England’s inflation report in May, governor Mark Carney warned that inflation was expected to pick up notably towards the end of the year.

The half-dozen years of ultra-low interest rates have cut returns on savings, but mortgage borrowers have benefited from lower repayments.

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