Interest Rates Held At 0.1% But Will Rise In Coming Months

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2+ y ago 8:46

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Interest Rates Held At 0.1% But Will Rise In Coming Months Bank Of England Hints

The Bank of England has indicated an interest rate rise in "coming months" to combat high inflation but held base rates.

At the Monetary Policy Committee (MPC) on Thursday, policymakers voted 7-2 in favour of no change from the current record low rate of 0.1%.

Bank governor Andrew Bailey said the decision had been a "close call", while the MPC said there was "value" in waiting to see how the jobs market coped with the end of the furlough scheme.

The UK has resisted calls to hike rates amid market expectations of 4% inflation by the year end.

I would still expect rates to go up to 0.25% before too long in order to curb inflation in Europe and America where prices are rising by over 5% per annum.

US starts ‘tapering’ $120 billion a month bond purchases by $10 billion.

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