The uk central bank left the base rate unchanged at 0.25 percent after its monetary policy meeting on Thursday, according to Bloomberg News.
The so-called base – or interventionsräntan is the Bank of England’s lending rate to the money market and its main instruments.
Of the 55 surveyed analysts in the Bloomberg News prognosenkät counted all that the repo rate would be left unchanged.
The latest Bank of England adjusted the base interest rate was on August 4, 2016, when it was lowered by 25 basis points to 0.25 per cent.
The Bank of England announced also that they leave the target for asset purchases unchanged at sek 435 billion pounds, as well as the aim to buy corporate bonds for 10 billion pounds. Expected was an unchanged level.
Kristin Forbes had reservations and wanted to raise the repo rate by 25 basis points, and some other members indicated that it may not be needed, they should follow her.
The Bank of England notes that if the economy grows as expected ”so will monetary policy have to be tightened in a somewhat higher level during the forecast period than the very gently rising path implied by market interest rate curve as of may projections are based on”.
The projections in the new inflation report is based on the assumption that the adjustment to a new relationship with the EU goes smoothly. That is to say, to a situation where the Uk stands without agreement with the union after brexitförhandlingarna can be avoided.
The committee reiterates , furthermore, that there are limits to the extent to which inflation can be allowed to exceed the target of 2 percent.
How long the current policyhållningen remains appropriate depends on the balance between a rate of inflation above the target and the amount of available resources in the economy as well as on the preconditions for inflation sustainably back to target.
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