BoE Leaves Rate Steady at 0.5%

The Bank of England left the Bank Rate on hold at a record low 0.5 percent on May 11th as widely expected. The size of the Asset Purchase Programme was left unchanged at £375 billion.

The decision was widely expected as markets await the central bank to publish the Inflation Report and its outlook on the economy on May 13th. 

The inflation rate stalled for the second straight month in March, staying well below the central bank target of 2 percent while GDP growth slowed in the first three months of 2015.

However, pay growth excluding bonuses increased at a faster 1.8 percent in the three months to February and house prices increased at its fastest pace this year in April, according to Halifax.

The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009. A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009. The previous change in the size of that programme was an increase of £50 billion to a total of £375 billion on 5 July 2012.

BoE Leaves Rate Steady at 0.5%

BoE | Joana Taborda |
5/11/2015 12:36:47 PM