Bank of England in 'wait-and-see-mode' as it maintains interest rates at 0.1%

Core inflation reaches highest rate since 2011

Elliot Gulliver-Needham
clock • 2 min read

The Bank of England’s Monetary Policy Committee (MPC) has voted unanimously to hold its key interest rate at 0.1%, while downgrading its GDP and inflation predictions for the rest of 2021.

The bank "is now in wait-and-see mode" said Hussain Mehdi, macro and investment strategist at HSBC Asset Management. "[It is] still providing a signal that tightening will be required in the coming quarters to keep inflation in check, but holding off any immediate action as it assesses near-term developments around Covid, the ending of furlough, and the persistence of supply-side disruptions including the recent spike in gas prices". The MPC also voted by a majority of 7-2 for the BoE to continue its existing programme of UK government bond purchases. The adjustment of the bank's fore...

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

FCA's Rathi addresses Autumn Budget market abuse concerns

FCA's Rathi addresses Autumn Budget market abuse concerns

Pens open letter to Treasury Committee

Isabel Baxter
clock 04 December 2025 • 2 min read
More tax, less shelter: A slow-burn Budget for savers and investors

More tax, less shelter: A slow-burn Budget for savers and investors

'The Budget documents make for sobering reading for those trying to build up their wealth'

Laith Khalaf
clock 04 December 2025 • 3 min read
OBR 'deeply regrets' early release of Budget document

OBR 'deeply regrets' early release of Budget document

Mistaken release of Budget documents forced Richard Hughes' resignation

Linus Uhlig
clock 02 December 2025 • 3 min read