At its monetary policy meeting on 7 July, the Bank of England (BoE) maintained the Bank Rate at 0.50% and also left the asset purchase facility (quantitative easing) unchanged at GBP 200 billion. The decision was broadly anticipated by the market, as economic growth remains subdued. Seven out of the nine members of the Monetary Policy Committee (MPC) voted to keep rates on hold at 0.50%, including BoE governor Mervyn King. Two members of the MPC voted to tighten monetary policy by 25 basis points. In addition, one member voted to increase the asset purchase programme to a total of GBP 250 billion. The next MPC meeting will be held on 3-4 August. The BoE continues to face the dilemma of reining in high inflation without derailing the still fragile economic recovery. For the time being monetary authorities are likely to maintain the policy stimulus, with a majority of Consensus Forecast panellists expecting the BoE to stay put in the third quarter.
United Kingdom Monetary Policy
Bank of England maintains rates
July 20, 2011
Looking for forecasts related to Monetary Policy in United Kingdom? Download a sample report now.
United Kingdom Economic News
October 21, 2016
Following nearly four months of little or no news regarding formal negotiations with the European Union, in early October, Prime Minister Theresa May finally shed some light on the Brexit timeline and announced that Article 50 of the Lisbon Treaty will likely be triggered before the end of March 2017.
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.