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4 Jun 2015
BOE keeps monetary policy steady – a non-event
FXStreet (Mumbai) - The Bank of England (BoE) left interest rates on hold at their record low on Thursday, as widely anticipated, while the bank's asset purchases to the tune of GBP375 billion were also left untouched at same level.
The central bank kept the base interest rate at record low of 0.5% for what is now the 75th month in a row. The nine-strong MPC has been unanimous recently in its decision to keep policy on hold.
Earlier expectations for a rate hike have been cooled down after growth slowed in the first quarter of this year, halving to 0.3%. Meanwhile, inflation has tumbled below zero, after the sharp fall in energy prices in the second half of the year.
The headline CPI gauge declined 0.1% in April from a year ago, dipping into the red for the first time in more than half a century. The BoE has a government-set target for inflation of 2%.
The central bank kept the base interest rate at record low of 0.5% for what is now the 75th month in a row. The nine-strong MPC has been unanimous recently in its decision to keep policy on hold.
Earlier expectations for a rate hike have been cooled down after growth slowed in the first quarter of this year, halving to 0.3%. Meanwhile, inflation has tumbled below zero, after the sharp fall in energy prices in the second half of the year.
The headline CPI gauge declined 0.1% in April from a year ago, dipping into the red for the first time in more than half a century. The BoE has a government-set target for inflation of 2%.