Bank of England keeps rates on hold in May

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The Bank of England has opted to keep its record low interest rates on hold in May as expected.

The bank’s monetary policy committee voted in favour of holding steady on the 0.25 per base rate by a split of seven to one. Rates were cut in the aftermath of the UK’s EU referendum last summer.

Kristin Forbes, an external committee member, voted for an immediate interest rate rise but was not joined in her dissent by other members such as Michael Saunders, who had given a hawkish speech within the past month.

The MPC was unanimous in its decision to keep the rate of bond purchases unchanged at their current pace (see graphic above).

Later this afternoon, BoE governor Mark Carney will be addressing journalists as the Bank releases its latest outlook for the UK economy in the quarterly inflation report.

More to follow…

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