Bank of England Keeps Rates on Hold

Investing.com – The Bank of England’s monetary policy committee left interest rates on hold at at its policy meeting on Thursday.

The decision to keep rates unchanged was in line with market forecasts.

Also as expected, the vote to hold steady was unanimous with all members of the Monetary Policy Committee (MPC) voting in favor.

Furthermore, the BoE decided to leave its asset purchase program unchanged as expected at ($604.7 billion) as well as to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £10 billion ($13.9 billion).

Separately, the revealed that the BoE expects inflation to move much closer to its 2% target. With the last reading at 3.0%, the British central bank expects inflation to drop to 2.28% in one year’s time, 2.16% in an additional year and then to 2.11% on the three-year horizon.

Investors will undoubtedly look for further details on the future path of UK monetary policy at BoE governor Mark’s on the inflation report at 8:30AM GMT (12:30GMT).

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