BoE Holds Key Rate at Record Low

The Bank of England left the Bank Rate on hold at a record low 0.5 percent on April 9th as widely expected. The size of the Asset Purchase Programme was left unchanged at £375 billion.

The decision was expected by markets as it comes ahead of a general election on May 7th while inflation slowed for the fourth straight month to 0 percent in February, hurt by lower global oil prices. Also, pay growth eased in the three months to January and house prices are expected to slow in 2015, according to Halifax. 

Yet, in February, policymakers said the inflation is more likely than not to fall below zero and that they could take whatever action is needed to ensure it comes back to 2 percent target, including cutting rates.

The benchmark interest rate has been kept at a record low for the past six years.

BoE Holds Key Rate at Record Low

BoE | Joana Taborda |
4/9/2015 12:35:24 PM