BoE Maintains Interest Rates Unchanged

The Bank of England (BoE) has decided to hold interest rates unchanged, maintaining its main rate at 0.10% in the Monetary Policy Committee (MPC) on Thursday.

MPC members voted unanimously for the decision, and also kept the current pace of the quantitative easing (QE) program at GBP 895 billion, which means that the British central bank will continue to buy up to GBP 875 billion worth of the British government’s debt instruments and GBP 20 billion of corporate bonds.

The MPC decided that the existing stance of monetary policy remains appropriate, according to the BoE’s statement.

The BoE continues to aim at achieving its 2% inflation target, in a way that helps to sustain growth and employment.

Moreover, the British Pound’s (GBP) effective exchange rate has appreciated and mortgage credit conditions have eased a little since the February meeting.

The bank further noted that since its previous meeting, developments in global economic growth have been a little stronger than anticipated, with the substantial new fiscal stimulus package in the United States set to provide significant additional support to the outlook.