BoE Leaves Interest Rates at 0.5%

The Bank of England’s (BOE) Monetary Policy Committee (MPC) voted 9-0 on Thursday to keep its monetary policy unchanged, leaving the U.K. interest rate at 0.5 percent in a result widely expected by markets.The focus now moves to inflation, which is at a five-and-a-half-year high, putting pressure on the bank to raise interest rates in order to temper rising living costs. Markets are looking for clues as to when and how frequently any rate hikes might take place in the coming year.Sterling dipped slightly from 1.3446 against the dollar to 1.3413 on the announcement as did the 10-year gilt yield, which moved from 1.214 percent to 1.206 percent, though the result was largely priced into the markets already.

Source: Bank of England unanimously votes to hold interest rates, shifting focus to inflation – CNBC

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.