Bank of England keeps interest rates on hold on first-quarter slump
London — The Bank of England (BOE) kept interest rates on hold after a first-quarter economic slump, and forecast that inflation will slow to its target faster than previously anticipated. The monetary policy committee (MPC) voted seven to two to hold at 0.5%, as predicted by all but three of 54 economists in a Bloomberg survey. Ian McCafferty and Michael Saunders reiterated their support for an immediate increase. The decision ends a roller-coaster ride for investors who had expected a hike until a few weeks ago, when data revealed a near standstill in economic growth and slower-than-expected inflation. While the BOE keeps alive the prospect of a rate increase later this year, its statement suggests a gentle tightening pace. Explaining their decision to stand pat this month, the majority of the MPC noted the recent weak numbers. They said that "the costs to waiting for additional information were likely to be modest, given the need for only limited tightening over the forecast peri...
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