The Bank of England kept its base rate at 0.5%


Moscow. On 5 November. The Bank of England on the results of the November meeting expected has kept the basic interest rate at the record low level of 0.5% per annum, established in March 2009.

The Bank of England also declined to change the size of the asset purchase program, leaving it unchanged at 375 billion pounds ($577 billion). Practically, this means that the program, funds which were exhausted in October 2013, is currently suspended.

As in the previous three meetings, in favor of an immediate rate hike voted only one member of the Committee on monetary policy (MPC), Ian McCafferty.

In addition, the Central Bank lowered its growth forecasts for the economy in 2015 and 2016 by 0.1 percentage point, to 2.7% and 2.5% respectively. Meanwhile, the growth forecast for the British economy in 2017 has been improved to 2.7%.

The Bank of England lowered the inflation Outlook in the country (CPI) for the period until the third quarter of 2017. It is expected that the growth rate of consumer prices will not exceed 1% until July 2016 and will amount to 2.1% in the fourth quarter of 2017.

As follows from the Protocol of the meeting, published simultaneously with the value of the bet, the leadership of the Central Bank with fear assesses risks from emerging markets and the decline in world inflation. Meanwhile, in regard to domestic demand, they retained their optimism, noting that the positive factors in this case would be low fuel prices and interest rates on loans.

In the opinion of MPC members, “current inflationary pressure is not sufficient to raise the bet”.

The pound decreased after the publication of the decision to maintain rates. To 14:25 for pound gave $1,5279 against $1,5389 to the announcement of the decision of the Central Bank. Against the Euro the pound fell with the Euro 1,4154 to 1,4043.

Meanwhile, the British stock index FTSE 100 has reduced the decrease. 15:11 Moscow time the indicator fell by 0.16% whereas prior to the decision of the Central Bank, the fall amounted to 0,53%.