Yael Selfin comments on the Bank of England decision to hold the Bank Rate at 0.5%.
“With the new Chancellor’s announcement that the next Budget will not be presented until the Autumn Statement, eyes were trained on the Bank of England today to steady the economic ship over the next few months. The BoE has chosen prudence by keeping interest rates at 0.5% and waiting for further data to emerge before producing its Inflation Report at the beginning of August and making its decisive move then.
“In choosing to hold interest rates, the BoE has signalled a vote of confidence in the resilience of the UK economy, holding back the fire power of cutting rates until more data becomes available on the state of the economy post the Brexit vote. While this does mean businesses will now need to wait a few more weeks for further clarity on economic policy, the BoE has confirmed its intention to proceed as more evidence becomes available.”
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