• News
  • Culture&Arts

Bank of England to keep its main interest rate unchanged at 0.5%

Bank of England to keep its main interest rate unchanged at 0.5%

The BoE's decision follows the Federal Reserve's 21 March announcement it would raise USA interest rates by 25bps in Jerome Powell's first meeting as chairman since taking over from Janet Yellen.

No economist polled by Reuters expects the BoE to follow up on its rate hike in November - its first since 2007 - at its March meeting.

The Bank of England's Monetary Policy Committee (MPC) has voted by a majority of 7-2 to keep United Kingdom interest rates at the present level of 0.5 per cent.

"The best collective judgment of the MPC remained that, given the prospect of excess demand over the forecast period, an ongoing tightening of monetary policy over the forecast period would be appropriate", the minutes of the March meeting said. Members Ian McCafferty and Michael Saunders, both of whom were the first two to call for an increase in rates in 2017, were the two dissenters.

The Bank of England has kept interest rates unchanged at 0.5%.

The bank's announcement was largely in line with market forecasts, although most BoE watchers expected a unanimous decision from the MPC to leave policy alone.

The Bank of England's Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment.

One bright spot: The panel noted that a squeeze on consumers from meager wage growth and high inflation triggered by a steep fall in the pound after 2016's Brexit vote appears to be fading.




Rate-setters also said future increases were likely to be "gradual" and "limited".

As such, the Reserve Bank of Australia (RBA) is now seen as unlikely to be considering near-term monetary policy adjustment.

In a speech given at HMT's International Fintech Conference yesterday, the Bank of England's deputy governor, Dave Ramsden, said the Hub will be a central point of contact for the fintech sector to engage with the Bank.

Seven of the BOE's nine officials voted to hold off for now, arguing that incoming data on growth and inflation don't yet justify another rise.

"The rate rise made in November felt like a straightforward reversal of the emergency post-Brexit cut, but this now feels more like we're entering a genuine tightening phase at the Bank".

Earlier this month, Bank of England Governor Mark Carney said crypto-currencies such as bitcoin had failed as a form of money, but he said the technology could improve the financial system in future. While UK retail sales lifted strongly in February by 0.8%, more than expected (most economists had penciled in a 0.4% climb), much of the February sales lift was down to supermarket sales growth rather than broader high-street shopping (bear in mind the demise of Maplin and Toys R Us).

This was a departure from the unanimous vote at February meeting and came as somewhat of a surprise given much of the market that had pencilled in another unchanged vote.

Leave Your Comment

Leave Your Comment


Latest News

  • YouTube updates its policies on videos featuring guns

    YouTube updates its policies on videos featuring guns

    YouTube's streaming service will reportedly also include exclusive videos and playlists. If you like YouTube for music and video, prepare for more commercials.
    Mattis, Afghan Leaders Meet in Kabul

    Mattis, Afghan Leaders Meet in Kabul

    The official, speaking to reporters on condition of anonymity, insisted that there is an urgency on the part of Pakistan to take action.
    Eriksen powers Tottenham into FA Cup semis

    Eriksen powers Tottenham into FA Cup semis

    But Tottenham were unruffled and quickly settled into a tempo that had the home side outnumbered and second best in midfield. Eriksen's second made the result safe just past the hour mark.
  • Apple: BlueFin Slashes iPhone Estimates for 2018; 'Challenging' Environment

    Apple: BlueFin Slashes iPhone Estimates for 2018; 'Challenging' Environment

    The report has also revealed that Apple has managed to bring down the manufacturing costs of the device to a much lower level. The purported iPhone SE 2 features an aluminum chassis instead of the stainless steel frame used on the iPhone X .
    Wendy Williams Cries As She Returns To TV Amid Illness

    Wendy Williams Cries As She Returns To TV Amid Illness

    Williams' time off came less than four months after the talk show host fainted on live TV during the Halloween episode of the series.
    Former President Barack Obama picks Michigan State to win NCAA Tournament

    Former President Barack Obama picks Michigan State to win NCAA Tournament

    President Donald Trump declined to publicly fill out a bracket last year and it's not clear if he will do one this year. On the women's side, he chose No. 1 overall seed UConn to top Mississippi State in the championship.
  • Thousands gather to march for gun control and spark activism in Washington

    Thousands gather to march for gun control and spark activism in Washington

    Summoned by student survivors of the Florida school massacre, tens of thousands of people poured into the nation's capital. Students chanted "enough is enough" and held up signs with slogans like "our ballots will stop bullets".
    New Zealand vs England: Black Caps Put Martin Guptill On Standby

    New Zealand vs England: Black Caps Put Martin Guptill On Standby

    England , on the other hand, have not won any of their last ten away Test matches and ended up losing eight of them. I felt I got too technical, constantly looking at videos. "I've got that buzz back", he said.
    Trump has banned the trading of Venezuela's cryptocurrency, the petro

    Trump has banned the trading of Venezuela's cryptocurrency, the petro

    Venezuela became the 2nd country in Latin America and 5th in the world with the greatest proportions of university students. As of today, US citizens, residents and companies can't buy or sell Petro .
  • Midwest: Kansas sees huge lead shrink but holds off Clemson

    Kansas coughed up most of a 20-point, second-half lead before holding off No. 5 Clemson , 80-76 in the Midwest Region at Omaha. Clemson attempted to put a dent in its deficit before the break but a five-point Jayhawk possession dashed those hopes.
    Trump Bans US Citizens, Residents from Venezuela's Crypto 'Petro'

    Trump Bans US Citizens, Residents from Venezuela's Crypto 'Petro'

    U.S officials are in support of the sanction with emphasis that the global communities should put pressure on Maduro regime. Since that time , Maduro has claimed that pre-sales of the digital currency token have now raised $5 billion US.
    FA Cup quarter-finals

    FA Cup quarter-finals

    Already, Chelsea can not retain their Premier League title this season, and they have also crashed in the Champions League. He added: "For Chelsea it is the same, the last opportunity to win something this season".
  • Sweet 16 Action at TD Garden — March Madness

    Sweet 16 Action at TD Garden — March Madness

    Graham's offensive rebound after a Svi Mykhailiuk miss at the 1:57 mark allowed the Jayhawks to run nearly a minute off the clock. At one point, the Wildcats hit just 1 of 10 from the field and had a nine-minute stretch in which it made just one field goal.
    Lollapalooza Announces Massive 2018 Lineup

    Lollapalooza Announces Massive 2018 Lineup

    Tickets for Lollapalooza 2018 , including four-day passes and VIP packages, are on sale through the festival's website . The four-day music festival takes place from August 2 to 5 in Chicago's Grant Park .
    Mattoon Claire's staying open during chain's bankruptcy process

    Mattoon Claire's staying open during chain's bankruptcy process

    Last week, Toys "R" Us gave up its fight to restructure operations and made a decision to liquidate all of its USA stores. The company accrued the almost $2 billion debt after Apollo Global Management LLC purchased it for $3.1 billion in 2007.
  • Bankruptcy Frees Harvey's Accusers From NDAs

    Bankruptcy Frees Harvey's Accusers From NDAs

    Meanwhile, prosecutors in New York, Los Angeles, and London are pursuing possible criminal cases against Weinstein. Publicly, Weinstein has denied all of the allegations against him.
    UK Red Arrow aerobatic team plane crashes at Wales air base

    UK Red Arrow aerobatic team plane crashes at Wales air base

    It's thought the aircraft was flying from RAF Valley to the team's base at RAF Scampton in Lincolnshire when it crashed. A spokesman said they sent an emergency ambulance to the scene and Wales Air Ambulance was also in attendance .
    Apple to Develop MicroLED Screens to Replace Samsung Screens

    Apple to Develop MicroLED Screens to Replace Samsung Screens

    Back then, rumors had it that Apple will use MicroLED in its then-upcoming Watch, but the company ended up using an OLED screen . Apple's research facility in Santa Clara has been operating in secret for a few years now, but progress has been slow.

Breaking News



Recommended

'We Will Fight To The End:' China Responds To Trump's Trade Measures

China's Defense Ministry said two Chinese naval ships had been sent to identify the USA ship and warn it to leave. Correction: The story has been corrected to state that USA defense officials confirmed the operation Friday.

UP woman raped by husband, FIR registered on court's order

In their initial questioning, police said that Katcharin appeared to be mentally ill and denied being involved in the attack. A crowd of men and boys watched as she collapsed unconscious after the shocking beating in Bulandshahr , Uttar Pradesh.

Ex-Playboy Model Sues to Break Silence on Alleged Trump Affair

Trump", but alleges the company warns her to say nothing when contacted by the media and has threatened her with "financial ruin". McDougal apparently was paid $150,000 while Clifford was given $130,000 to shut up about Trump's extramarital affairs.

Fortnite Blitz Mode Being Changed, Materials Rebalanced

The Cary-based developer have also advised Battle Royale and Fortnite Save The World fans on how to stay safe online. The Fortnite limited time Blitz mode will be the first LTM that Fortnite Mobile fans are able to take part in.

Beyoncé, Jay-Z's daughter Blue Ivy bid $19000 at charity auction

In the pictures, Blue Ivy looks delighted with her outfit as she poses in front of a mirror while her mum stands behind her . Her mother Beyonce also joined the auction and won a bid on Lorraine Schwartz panther earrings at $17,000.

Govt flayed for 'misleading' families of 39 killed in Iraq

The government had for years said it would only declare the men dead once it had full evidence. Earlier Swaraj said the government can not declare any person dead without concrete proof.

Infantino okays use of VAR at World Cup amid criticism

This is Morocco's fifth attempt to host the World Cup after making bids for the 1994, 1998, 2006 and 2010 finals. The five existing stadiums that need upgrading are in Marrakech, Agadir, Fez, Rabat and Tangier.

Woods enters Sunday five shots back

I feel like over the last couple of months of 2017 into this year I sort of rediscovered my love for the game a little bit. Thought not always at his best, Woods made a number of great par saves, including one for the ages on the par-four 15th.

Lionel Messi scores a beauty before showing off jazzy new celebration

He did not play in Barcelona's 2-0 win at Malaga in the previous league round because of the birth of his third son. Paco Alcacer and Lionel Messi both netted in a masterful opening-half performance from Ernesto Valverde's side.

PNB fraud: Another Mumbai firm booked over false LoU issuance

PNB shares closed 0.8 percent down in a Mumbai market that fell 0.5 percent. A PNB spokesman had no immediate comment on the Chandri paper case.