At its latest monetary policy meeting on 7 April, the Bank of England (BoE) left the Bank Rate unchanged at 0.50%, in a decision widely expected by the market. The Bank also left the asset purchase facility (quantitative easing) unchanged at GBP 200 billion. The drop in inflation observed in March along with dismal growth figures have eased pressure on the BoE Monetary Policy Committee (MPC) to take immediate action, although price pressures remain amid rising international commodity prices. That said, as in the previous meetings, three out of nine members of the MPC voted to tighten the monetary policy, the most hawkish being Andrew Stance, who recommended a 50-basis-point increase. Meanwhile, the remaining six members, including BoE governor Mervyn King, voted to maintain the current stance. The BoE maintained its view that inflation would moderate in the medium term, as the impact of the factors temporarily boosting inflation waned. The next MPC meeting will be held on 4-5 May with some analysts, albeit now a minority, anticipating a rate hike.
United Kingdom Monetary Policy
Bank of England maintains loose monetary policy stance
April 20, 2011
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United Kingdom Economic News
October 19, 2016
In September, jobless claims increased by 700 from the previous month, according to the Office for National Statistics (ONS).
October 18, 2016
In September, consumer prices increased 0.2% from the previous month, which came in below the 0.3% increase seen in the previous month.
October 8, 2016
In August, industrial production contracted 0.4% over the previous month in seasonally-adjusted terms, which contrasted the 0.1% increase recorded in July.
October 3, 2016
In September, the manufacturing sector recovered the ground it had lost after the EU referendum.
September 30, 2016
In September, home prices in the United Kingdom rose 0.3% over the previous month, which was below the 0.6% increase seen in August that had marked the highest reading in five months, according to the Nationwide Building Society (NBS).