Bank leaves interest rates on hold

The Bank of England has kept rates on hold.

The Bank of England has kept rates on hold. - Credit: PA

The Bank of England left interest rates on hold today in its first policy decision since official figures showed inflation turning negative.

Ultra-low inflation has pushed back expectations of when the Bank will start to raise rates, which have remained at 0.5% for more than six years, while the latest economic data appear to have killed off any chance of a hike coming soon.

Closely-watched figures from the dominant services sector yesterday signalled a sharp slowdown in growth in May, dampening hopes that the pace of the recovery could bounce back in the second quarter after a weak start to the year.

Today’s decision also saw the Bank leave the scale of its money-printing quantitative easing (QE) programme unchanged at £375 billion.

It comes a day after the European Central Bank left its interest rate on hold at 0.05% and said its own 1.1 trillion euro (£810 billion) stimulus programme was helping to support a modest recovery in the eurozone.

You may also want to watch:

The Bank of England announcement comes after official figures showed Consumer Price Index (CPI) inflation fell to minus 0.1% in April, in line with expectations.

It marked the first time inflation turned negative in more than half a century.

Most Read

Become a Supporter

This newspaper has been a central part of community life for many years. Our industry faces testing times, which is why we're asking for your support. Every contribution will help us continue to produce local journalism that makes a measurable difference to our community.

Become a Supporter
Comments powered by Disqus