As expected, the Bank of England kept the interest rate and the buyout program unchanged after its monetary policy meeting on Thursday.
The key policy interest rate remains at 0.1% and the buy-up programme at £ 895 billion, including £ 20 billion for corporate bond buyouts. Of the nine policy makers, one voted against maintaining the programme. It is known that Chief Economist Andy Haldane is in favour of early phasing out or’ tapering ‘ the buy-up program, but he did not get any supporters.
The Bank of England stated that inflation will fall after a period of higher inflation above the target. In May, British inflation rose to 2.1 percent, from 1.6 percent in April. UK house prices are also rising sharply.
The central bank also noted that the estimate for economic growth in the second quarter since May has been increased by 1.5 percentage points.
On Thursday, the British pound was slightly lower compared to the euro at 0.8576, compared to 0.8547 prior to the interest rate decision.