No shock to see the Bank of England kept interest rates on hold at 0.5% today. In its last inflation report it made very clear it saw the risks were still to the downside:
More red- just - below target basically means rates on hold
The Old Lady commented:
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion.
The news sites are full of comment about the non-move – a sure sign that everyone knew it was(n’t) coming and prepared their statements in advance.
Indeed, most pundits have been re-stating their positions for 12 months.
This pundit continues to think the full effects of low rates and QE are yet to come through, and that inflation will tick up sooner than the geniuses at the Bank expect.
(Source: Bank of England)
