At its 8-9 October meeting, the Monetary Policy Committee (MPC) maintained the Bank Rate at 0.50% and the stock of asset purchasing at €375 billion. The Committee made both of the decisions unanimously. According to the Bank, the economy gained momentum in the first half of the year. The improvement mainly reflected diminishing "perceived tail risks in the euro area" as well as an easing of credit conditions. In addition, the decrease in mortgage rates is expected to be an important factor in the revival of the housing and mortgage market in 2014. Regarding price developments, the Bank acknowledged that the recent appreciation of the currency will put downward pressure on inflation, "reducing the likelihood of inflation being above 2.5% at the 18-24 month period relevant to the MPC's forward guidance 'knockout'." All of the FocusEconomics Consensus Forecast panelists expect the BoE to leave interest rates unchanged at 0.50% this year. For next year, the majority of panelists expect the BoE to stay put, resulting in a year-end projection of 0.54%.
United Kingdom Monetary Policy
BoE keeps the Bank Rate on hold
October 23, 2013
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United Kingdom Monetary Policy Chart
Note: Bank rate in %.
Source: Bank of England (BoE).
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.