• Bank of England interest rate decision not to do anything to meet the unexpected election

    Remittance Network April 9 hearing – in the UK general election as well as from four weeks of the occasion, the Bank of England [microblogging] (BOE) on Thursday (April 9) announced the monetary policy unchanged, as expected。A growing number of analysts believe the Bank of England will remain on hold until next year in terms of interest rates, the central bank will wait for economic recovery in the UK firm footing and inflation。  The Bank of England said on Thursday, the benchmark interest rate 0.A record low of 5% unchanged and maintain the 375 billion pounds of asset purchases unchanged。Minutes of the April 8-9 meeting will be released on April 22。  In view of the British general election held on May 7 or appear no party won a landslide victory of the situation, coupled with the inflation rate is zero, Bank of England Governor Carney (Mark Carney) Monetary Policy Committee (MPC) led by now almost no reason to change the policy stance。   HSBC economist in London, Elizabeth Martin had said: "election-related uncertainty is likely to dampen investor confidence, as inflation remain low and the economic slowdown, we do not think the central bank will raise interest rates until February next year。"It is worth mentioning that a meeting of the Bank of England monetary policy decision will be announced May 11 Ri (Zhouyi)。  The Bank of England has been the benchmark interest rates 73 consecutive months remained at record low。Conservative Party leader David Cameron would make is the second in mid-1950 when the Labor Party prime minister Clement – after Attlee, the first witness British Prime Minister lending rate remained unchanged at a full term。  Attlee witnessed the decline of the British economy gradually recovering from World War II, during his tenure, and now the UK economy is to recover from the financial crisis。  Late last year the British economy at a faster than expected rate of expansion is expected until the end of 2016 the economy has remained strong。But oil prices fell to drive global inflation fell, prompting more than 20 global central banks this year to relax the policy。UK February CPI annual growth rate down to zero, for the first time in history, but is expected to rise in coming quarters。  CA-CIB's Slavena Nazarova in a report to clients, said: "Short-term low inflation and a strong pound MPC prompting more cautious, the first rate hike may be postponed to the downside risks to inflation expectations subside completely when。"Reuters survey, analysts estimate the value of the Bank of England will raise interest rates for the first time in early 2016, will also only raise rates by 25 basis points。Also as central bankers have repeatedly stressed, the adjustment of interest rates will likely be gradual。Survey shows that only the end of next interest rate will be 1.25% by the end of 2017 2.0%。Before the financial crisis, its up to 5.75%。

Comments are closed.