Bank of England Keeps Rates on Hold

At its May 8th, 2014 meeting, the Monetary Policy Committee voted to maintain the bank rate at 0.5 percent and the stock of purchased assets financed by the issuance of central bank reserves at £375 billion.

The decision was widely expected, but pressure is growing on committee members to consider a rate rise. The previous change in bank rate was a reduction of 0.5 percentage points to 0.5 percent on 5 March of 2009.  

The economy expanded 0.8 percent in the first three months of 2014, making a fifth straight quarter of economic expansion. House prices increased 8.5 percent year-on-year in April and were 2.3 percent higher than in the previous three months, according to the Halifax and Bank of Scotland housing index.

Next week, the central bank will release its quarterly inflation report, including its new growth and inflation forecasts for 2014. 

Bank of England Keeps Rates on Hold

BoE | Joana Taborda |
5/8/2014 12:29:29 PM