Bank of England holds interest rates at record lows

Predicts two lost years of UK growth

clock • 2 min read

The Bank of England (BoE) met expectations and kept Bank Rate at 0.1%, a “sensible” decision that allows it to “leave some powder dry for now”.

Members of the BoE's Monetary Policy Committee (MPC) voted unanimously to keep interest rates at the record low level and to continue its asset purchase programme at the same level, £745bn. It predicted UK GDP would not return to its 2019 level until the end of 2021, while unemployment will reach 7.5% by the end of 2020. In its policy statement, the MPC said recent data developments, including strengthening global economic activity, recovering spending indicators and a return to normal of the housing market, may not be informative about how the economy will perform over a longer timef...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

'Discussion-worthy stuff': Chinese assets under pressure

'Discussion-worthy stuff': Chinese assets under pressure

China has an 18% share of global GDP and only a 3% MSCI ACWI weighting

Chris Justham
clock 02 April 2024 • 2 min read
Why investors 'can't outrun' slow-moving demographics

Why investors 'can't outrun' slow-moving demographics

'Demographic change is a key megatrend'

Darius McDermott
clock 07 March 2024 • 5 min read
Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

British ISA, Office for Budget Responsibility, tax cuts

Valeria Martinez
clock 07 March 2024 • 4 min read