Fund managers have warned investors to expect "forceful action" from the Bank of England in August after it held interest rates at 0.5% today, as well as criticising governor Mark Carney for wrong-footing markets by raising expectations of an immediate post-Brexit rate cut.
Their reaction comes after the Bank of England (BoE) left interest rates at 0.5% and made no change to its £375bn quantitative easing programme, despite economic pressures in the wake of the UK's decision to leave the European Union last month. Markets widely expected the Monetary Policy Committee (MPC) to cut rates by 25 basis points to 0.25% this month, but the committee voted by a majority of 8-1 to hold. However, the Bank said most members of the committee expect monetary policy to be loosened in August. It said: "Markets have functioned well, and the improved resilience of the...
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