Bank of England: No Change in Stance

July 9, 2015

A boilerplate statement from the Monetary Policy Committee informs the public that no changes were taken in the 0.5% Bank Rate or the 375 billion pound limit on the asset purchase program.  Minutes of the July 8-9 meeting will be published on July 22.  The June meeting had been unanimously in favor of retaining unchanged policy settings, although two of the nine committee members found the decision between a 0.5% bank rate and a hike to 0.75% to be “finely balanced.”  The June meeting concluded that headwinds to growth are lessening and a notable rise of inflation closer to the 2% target is likely.  Future normalization of interest rates away from the current level will depend on evolving British inflation prospects, not the actions of other central bank authorities.

Copyright 2015, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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