Bank of England to keep its main interest rate unchanged at 0.5%
London — The Bank of England (BoE) said on Thursday that it had decided to keep its main interest rate at 0.5%, as it weighed high UK inflation against Brexit uncertainty. "Our monetary policy committee (MPC) has voted by a majority of seven to two to maintain the bank rate at 0.5%," said a statement following a regular meeting. The MPC added that it was maintaining the amount of cash stimulus pumping around the UK economy at £445bn. While the BoE sat tight this time around, minutes of the meeting that ended on Wednesday firmed up market expectations that it will raise its key rate by a quarter-point at its next gathering in May. The central bank noted that "tightening of monetary policy ... will be appropriate to return inflation" to its 2% target. Regarding Brexit, the minutes said that "developments regarding the UK’s withdrawal from the EU — and, in particular, the reaction of households, businesses and asset prices to them — remain the most significant influence on, and source ...
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