The Latest: Bank of England keeps interest rates lowSeptember 14, 2017 11:02am

LONDON (AP) — The Latest on the Bank of England's monetary policy meeting (all times local):

12: p.m.

The Bank of England has opted to keep its main interest rate at the record low of 0.25 percent even though inflation is running way above target.

In a statement Thursday, the bank said the Monetary Policy Committee voted 7-2 in favor of unchanged interest rates. The decision was expected in the markets.

However, rate-setters faced a dilemma during their deliberations. While inflation is running at 2.9 percent, and ahead of the Bank's target of 2 percent, the British economy has been weakening this year amid a consumer slowdown largely due to higher prices. The British economy has been the slowest-growing Group of Seven industrial economy this year.

There are also fears that uncertainty surrounding Britain's exit from the European Union will further weigh on confidence.


11:00 a.m.

Bank of England policymakers have been faced with a dilemma during their deliberations over whether to increase interest rates, the outcome of which is due later Thursday.

The consensus in financial markets is that the nine-member Monetary Policy Committee will opt against raising the bank's main interest rate from the record low of 0.25 percent.

Though above-target inflation is likely to prompt at least two on the panel to vote for a hike, the majority are expected to opt for no change in light of the slowdown in Britain's economic growth and uncertainty over the country's exit from the European Union.

Economic figures this week have highlighted the dilemma. While inflation is running at 2.9 percent, above the bank's 2 percent target, households are facing a squeeze on their incomes.

Page 1 of 1

More Stories Like This

In this Feb. 14, 2017 photo, a rooftop is covered with solar panels at the Brooklyn Navy Yard in New York. The Manhattan skyline is at top. Cheap solar panels imported from China and other countries have led to a boom in the U.S. solar industry, where rooftop and other installations have surged 10-fold since 2011.   (AP Photo/Mark Lennihan)
Trade panel: Cheap imports hurt US solar industry
British Prime Minister Theresa May delivers her speech, in Florence, Italy, Friday Sept. 22, 2017. May will try Friday to revive foundering Brexit talks — and unify her fractious government — by proposing a two-year transition after Britain's departure from the European Union in 2019 during which the U.K. would continue to pay into the bloc's coffers. (AP Photo/Alessandra Tarantino, Pool)
The Latest: EU's Brexit chief welcomes 'constructive' speech
The Latest: Panel votes against cheaper solar panel importsA U.S. trade panel has found that low-cost solar panels imported from China and other countries have caused serious injury to U.S. solar manufacturers
FILE - In this May 8, 2016, file photo, a North Korean solder stands guard near barrels stacked up near the river bank of the North Korean town of Sinuiju, opposite the Chinese border city of Dandong. China announced Saturday, Sept. 23, 2017 it will limit oil supplies to North Korea under U.N. sanctions starting Oct. 1, 2017, stepping up pressure on Pyongyang over its pursuit of nuclear and missile technology. (Chinatopix via AP, File)
China imposes limit on oil supply to North Korea
Third round of NAFTA talks opens in CanadaMexico, the United States and Canada have begun a second round of talks on re-negotiating the North American Free Trade Agreement
After German vote, Europe can turn to patching euro's flawsGermany's national election will be the starting gun for a renewed debate on how to fix longstanding flaws in how the euro currency is set up
This component is currently unavailable.

Related Searches

Related Searches