No Respite for Savers as Interest Rates Remain at 0.25%

Interest rates remained unchanged today at 0.25%, while the Bank of England forecast inflation to peak at 3% in October

Karen Kwok 3 August, 2017 | 4:00PM

The Bank of England’s Monetary Policy Committee has voted to leave interest rates on hold. The UK Central Bank also lowered its inflation, growth and wage forecasts in an announcement today. Sterling fell against the euro to a nine-month low of €1.11.

The MPC voted 6-2 to keep the bank rate unchanged at 0.25%. It has been 12 months since the Committee voted to cut the bank rate to that record low level, following the UK voted to leave the European Union in the Referendum. The £436 billion government purchase programme and £10 billion corporate bond purchase programme remained unchanged.

Inflation Will “Rise to 3% in October”

In its inflation report, the Central Bank cut its economic growth prediction for 2017 to 1.7% this year from a prediction of 1.9% made in May, while forecasts for 2018 fell to 1.6% from 1.7%.

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About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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