Home  News BOE leave interest rates on hold
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BOE leave interest rates on hold |
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The Bank of England decided to leave interest rates unchanged at
today’s meeting. However the decision was another close call as
policymakers juggled the risks of a slowing economy with rising
inflationary pressures.
The Bank of England decided to leave interest rates unchanged at
today’s meeting. However the decision was another close call as
policymakers juggled the risks of a slowing economy with rising
inflationary pressures.
Last month’s rate cut of 0.25% was the
first cut for two years backed by all nine members of the MPC and came
about amid renewed worries in the global money markets. By leaving
rates on hold this month, it gives the Bank of England time to take
stock and establish how the retail sector faired over the crucial
Christmas period and whether the money markets continue to thaw. Since
December’s interest rate announcement, inter-bank lending rates have
fallen dramatically, lessening the urgency for a rate cut. However, the
recent depreciation of Sterling will add additional inflationary
pressures, as imports become more expensive.
Following today’s
decision to leave rates on hold, there is now a high probability that
the MPC will look to cut rates in February, when the Bank updates its
economic growth and inflation forecasts.
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