BoE Keeps Key Rate At Record Low

The Bank of England retained its record low key interest rate and the size of the quantitative easing unchanged.

The Monetary Policy Committee decided to hold the key bank rate at 0.50 percent and the size of asset purchases at GBP 375 billion at the end of the two-day rate setting meeting on Thursday.

The rate has been at a historic low since March 2009. The previous change in quantitative easing was an increase of GBP 50 billion in July 2012.

The minutes of the meeting is due on July 22. At the June meeting, policymakers unanimously voted to keep monetary policy stance unchanged.

Wariness over just what will happen with Greece and how badly the rest of the Eurozone could be hit was also a very compelling reason for the BoE to sit tight on interest rates, IHS Global Insight Economist Howard Archer, said.

However, he said an interest rate hike before the end of 2015 cannot be ruled out.

The material has been provided by InstaForex Company – www.instaforex.com

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