Bank of EnglandThe Bank of England’s Monetary Policy Committee voted to make no change to either the Bank Rate or quantitative easing. Therefore the Bank Rate still stands at 0.5% and the MPC opted to keep QE on hold at £375billion.

Since the May Inflation Report, market interest rates have risen sharply internationally and asset prices have been volatile. In the United Kingdom, there have been further signs that a recovery is in train, although it remains weak by historical standards and a degree of slack is expected to persist for some time. Twelve-month CPI inflation rose to 2.7% in May and is set to rise further in the near term. Further out, inflation should fall back towards the 2% target as external price pressures fade and a revival in productivity growth curbs domestic cost pressures.

http://www.bankofengland.co.uk/publications/Pages/news/2013/007.aspx

 

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