Thursday, August 4, 2011

Bank of England Holds Bank Rate at 0.50%

The Bank of England (BoE) maintained its official Bank Rate, which is paid on commercial bank reserves, steady at 0.50%.  The BoE also made no changes to its 200 billion pound asset purchase program.  The Bank does not supply commentary with its monetary policy decisions, however the minutes of the monetary policy committee meeting will be published at 9.30am on Wednesday the 17th of August 2011, according to the Bank's announcement.  The Bank will also release inflation and output projections in its Inflation Report at 10:30am on Wednesday the 10th of August 2011.

The Bank also held the official Bank Rate unchanged at 0.50% at its July meeting this year; the rate has remained on hold since March 2009, when the Bank reduced the interest rate by 50 basis points to 0.50%.  The United Kingdom reported annual consumer price inflation of 4.2% in June, compared to 4.50% in May and April, and 4.00% in March, and still above the Bank's inflation target of 2.00%.  The UK saw quarterly GDP growth of 0.5% in Q1 this year, while annual economic growth was reported at 1.8%.


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