Bank of England Holds Bank Rate at 0.5%

In its January 9th meeting, the Bank of England Monetary Policy Committee decided to maintain the stock of asset purchases unchanged at 375 billion pounds, as widely expected. The official Bank Rate paid on commercial bank reserves was also kept at 0.5 percent.

The Committee reached its decisions in the context of the monetary policy guidance announced alongside the publication of the August 2013 Inflation Report. The Bank also said it will not think about raising rates until the unemployment rate falls to 7 percent. 

In October, UK’s jobless rate fell for the second straight month to 7.4 percent, from 7.6 percent in September. 

But the inflation rate is also on a downward trend. In November, prices decelerated for the second month in a row to 2.1 percent.

Bank of England Holds Bank Rate at 0.5%

BoE | Joana Taborda |
1/9/2014 12:13:07 PM