The Bank of England kept interest rates unchanged at 0.5% as expected, and the details are as follow:
- MPC voted by 6 to 3 to keep interest at 0.5%.
- MPC voted unanimously to keep the bond purchase program unchanged.
- Andy Halden joined McCafferty and Saunders in supporting a rate hike.
- MPC members who support rate hikes see upward risks to wages and unit labor costs.
- Estimates for Q2 to grow by 0.4%.
- MPC expects inflation to rise slightly more than expected in the near term.
- All members agree that the interest rate hike in the future is likely to be gradual and limited.
- The QE program will be reduced at a gradual and predictable pace.
- All members now confident that the economy slowed in the first quarter temporarily.
- Tighter monetary policy will be appropriate.
- Bank of England will not think reducing QE until rates reach 1.5% which were earlier 2%.
