BOE Holds Rate with Only 1 Dissenter

The Bank of England kept U.K. interest rates at their record low for yet another month, after concerns about China led to more caution.

The Bank signaled the status quo may continue for even longer than anticipated on Thursday, with its Monetary Policy Committee (MPC) stressing risks to the U.K. economy were “more to the downside” in September than August.

Concerns about the quality of the U.K’s economic recovery, and external factors like the summer’s global stock market turmoil, encouraged the decision, according to minutes released by the MPC after its regular meeting on Wednesday.

The committee voted 8-1 to keep rates on hold, with Ian McCafferty, who voted for a 0.25 percent rise in the base rate, the sole dissenter once again. Gertjan Vlieghe, the most recent appointment to the MPC, voted with the consensus as expected. Rates have now been at their record low for six and a half years.

The majority of economists expect the Bank’s rate-setting committee to raise interest rates early next year, according to a Reuters poll released on Wednesday, ahead of the decision. However, a growing number are forecasting a much later rise – such as November next year, the call made by Citi economists.

via CNBC

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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