On a day dubbed “Super Thursday”, the Bank of England (BoE) broke with tradition to announce that the Monetary Policy Committee (MPC) voted by a majority of 8-1 to maintain the Bank Rate at 0.5% whilst simultaneously publishing the minutes of the MPC meeting held on 5 August 2015 explaining that decision. Rates at the BoE have been kept at 0.5% since March 2009.
All members agreed that, given the likely persistence of the headwinds weighing on the economy, when the Bank Rate does begin to rise, it is expected to do so more gradually and to a lower level than in recent cycles. The BoE now expects inflation to remain at around zero for at least the next two months, before rising to its 2% target at the end of the MPC’s two-year forecast period.
For the full Minutes, click here.