Bank of England keeps interest rates frozen
UK interest rates remain unchanged by the Bank of England as it weighs up potential risks to economic growth.
The Bank of England’s Monetary Policy Committee has nine sitting members, all of whom voted to keep interest rates locked at 0.75 per cent for now.
The MPC said that their decision was taken in light of the “perceived likelihood” of a no-deal Brexit and the present turbulence in global trade.
Rates have been at this level since August 2018, and the Bank forecasts a flat UK economy over the second quarter of this year.
A 0.4 per cent shrink in the UK economy in April this year saw inflation reduce to the Bank’s two per cent target in May.
The Bank of England has sought to keep inflation within one per cent either side of this target to protect economic growth.
Being on track has enabled the Bank to keep rates frozen and not have to raise rates to maintain a grip on prices.
Another vote, which was also unanimous, was for the Bank to keep hold of corporate bond purchases as well as UK government bond purchases.