United Kingdom: BoE stays put in July, adopts forward guidance
July 17, 2013
At its 3-4 July monetary policy meeting, the Bank of England (BoE) maintained the Bank Rate at 0.50% and left the size of its asset purchase programme at a total of GBP 375 billion.
All nine members of the Monetary Policy Committee (MPC) voted in favour of keeping the Bank Rate unchanged at 0.50%, along with maintaining the asset purchase programme at its current size. This was the first meeting chaired by Mark Carney, the Bank's new Governor. Carney introduced the "forward guidance" policy to the BoE, promising to keep interest rates low going forward. The next monetary policy meeting is scheduled for 31 July to 1 August.
All FocusEconomics Consensus Forecast panellists expect the BoE to leave interest rates unchanged at 0.50% this year. For next year, a majority of panellists also expect the Bank to stay put, resulting in a year-end projection of 0.54%.