GO
Loading...

Enter multiple symbols separated by commas

Bank of England Keeps Rates on Hold at 5.25%

The Bank of England kept interest rates on hold at 5.25% as widely expected Thursday.

The majority of economists expected rates to remain on hold, with only 11 out of the 60 analysts polled by Reuters predicting that the BoE would increase rates.

But most experts are convinced the BoE will raise rates next month by a quarter percentage point for the fourth time since August because policymakers are worried about an increase in firms' pricing power, according to Reuters.

The biggest reaction to the decision came in the foreign exchange markets where Sterling immediately lost ground across the board.

There had been uncertainty surrounding this month’s decision due to data on Thursday showing house price inflation at a two-year high. Manufacturing output also fell at its steepest pace in 1-1/2 years, Reuters reported.

Mervyn King, the BoE Governor said last week that house price inflation may be starting to slow, but the latest Halifax numbers on Thursday showed another 1.0% rise on the month.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Mark Cuban and Donald Trump

    Donald Trump appears to have Mark Cuban's vote, at least in terms of how the billionaire real estate mogul is conducting his political campaign.

  • Ferrari 488 Spider

    Ferrari's new 488 Spider will have a V-8 turbo engine and a retractable hard-top roof that lowers in just 14 seconds.

  • Members of the New Horizons science team react to seeing the spacecraft's last and sharpest image of Pluto before closest approach later in the day at the Johns Hopkins University Applied Physics Laboratory (APL) in Laurel, Maryland July 14, 2015.More than nine years after its launch, a U.S. spacecraft sailed past Pluto on Tuesday, capping a 3 billion mile (4.88 billion km) journey to the solar system's farthest reaches, NASA said.

    The New Horizons Pluto flyby mission set records for NASA's social media and web metrics——but why do we care so much?

U.S. Video