LONDON (MNI) – The Bank of England Monetary Policy Committee
produced no surprises at its May meeting, leaving Bank Rate on hold
at 0.5% and issuing no policy statement.
A Market News survey conducted prior to the meeting found no
analyst expecting any change in policy. Analysts attached only a 10%
median chance of a hike at the meeting.
Bank rate was first cut to 0.5% in March 2009 and has been on hold
ever since.
Analysts now believe the end of the prolonged policy pause is in
sight. At the March meeting three of the nine member MPC voted for a
rate hike and one voted for more quantitative easing.
The BOE will publish its May Inflation Report next Wednesday, which
should cast further light on its current policy thinking.
–London newsroom: 4420 7862 7492 email: ukeditorial@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MT$$$$]
