bank of england keeps rates at record low
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Bank of England keeps rates at record low

Arab Today, arab today

Arab Today, arab today Bank of England keeps rates at record low

The Bank of England in central London
London - AFP

The Bank of England opted Thursday to keep interest rates at a record-low 0.50 percent, despite governor Mark Carney's recent warning that they could rise sooner than expected.
The central bank's nine-member monetary policy committee (MPC) also decided after a two-day meeting to maintain the level of cash stimulus, or quantitative easing, at £375 billion.
Both decisions were in line with market expectations and were shrugged off on the London stock market. The BoE will publish minutes from the gathering on July 23.
The bank had slashed borrowing costs to 0.50 percent in March 2009, when it also launched the radical QE policy to stimulate economic growth.
However, Britain's economy emerged from recession in the second half of 2009, after a fierce downturn rooted in the global financial crisis, and has since recovered somewhat.
The economy powered ahead with 0.8 percent growth in the first quarter of 2014 compared with output in the final three months of last year.
However, analysts argue that easing inflation may persuade policymakers to keep record-low rates for the time being.
"Although the economic recovery appears to be heading into the second half of this year with plenty of momentum, the continued weakening of inflationary pressures suggests that today’s decision by the MPC to leave interest rates on hold is likely to be repeated throughout 2014," said Capital Economics analyst Samuel Tombs.
- Sliding consumer prices -
Consumer prices have been sliding in Britain, with 12-month inflation slowing to 1.5 percent in May -- the lowest level for four and a half years.
The central bank is therefore having to deal with inflation that is below its 2.0 percent target, and a housing market that has rallied over the past year, especially in London.
Mindful also that it has to ensure that Britain's growth revival keeps going, the central bank has so far shied away from raising rates to prevent a property bubble from forming.
Instead, it has deployed other tools at its disposal to deal with the rising housing prices.
Carney had last month hinted that the bank could lift rates sooner than expected, prompting analysts to price in a hike by the end of the year.
The bank's main lending rate has been locked in at 0.50 percent for more than five years, but amid signs that Britain's housing market could face a fresh price bubble, the BoE last month announced a cap on lending for home loans.
The bank has recommended that property loans of 4.5 times a borrower's income or higher should comprise no more than 15 percent of new mortgages, with effect from October.
Thursday's decision was the first since Carney warned last month that interest rates could rise sooner than financial markets had previously thought.
The pace of Britain's economic recovery has intensified pressure for a rise.
At the same time, policymakers have also been urged not to take any action that could put growth in jeopardy by saddling firms with higher borrowing costs.
The British Chambers of Commerce (BCC) -- a business lobby group -- said this week that the bank should avoid any "hasty" move to raise rates after signs of slowing expansion in some sections of the economy.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bank of england keeps rates at record low bank of england keeps rates at record low

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bank of england keeps rates at record low bank of england keeps rates at record low

 



GMT 12:48 2016 Sunday ,27 November

Cilic, Dodig push Croatia to brink of Davis Cup

GMT 05:24 2017 Thursday ,28 December

Erdogan says 'terrorist' Assad cannot be part of Syria

GMT 12:59 2016 Saturday ,05 November

WB welcomes economic reforms in Egypt

GMT 18:40 2016 Saturday ,05 November

Egyptian GDRs in London down

GMT 10:57 2017 Wednesday ,06 December

Peru striker Guerrero has doping ban extended

GMT 17:51 2017 Tuesday ,07 March

Trump Signs New Travel Ban on Six Muslim Countries

GMT 10:30 2017 Wednesday ,06 September

Saudi Information Ministry praises media role during Hajj

GMT 15:29 2017 Tuesday ,24 January

Mind games really do help your brain

GMT 06:55 2015 Thursday ,01 October

Boston Red Sox beat Yankees

GMT 08:17 2017 Monday ,28 August

Bahrain celebrates World Humanitarian Day 2017

GMT 02:07 2017 Tuesday ,28 February

Opposition seeks Russian support at Syria talks
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday