Bank of England keeps interest rates steady amid uncertainty

LONDON (AP) — The Bank of England policymakers have voted to keep interest rates at their record low of 0.5 percent as Governor Mark Carney unveils economic forecasts for Britain.

The quarterly inflation report Thursday comes at a time of market volatility and plummeting oil prices. The dark mood prompted Carney to say last month that “now is not yet the time” to raise rates from the level struck in March 2009.

With inflation at 0.2 percent — far below the 2 percent target rate — there’s little pressure to raise rates. Some suggest the bank might consider lowering rates, following in Japan’s footsteps.

Philip Shaw, economist at Investec, says it he’d be interested to know “what weight, if any, the (policymakers) places on a prospect on a reduction in the bank rate.”

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s