Bank of England leaves rates at record low of 0.5%
The Bank of England Monetary Policy Committee voted unanimously to maintain the Bank Rate at 0.5 percent and leave the stock of purchased assets at £375 billion on May 12th, 2016 as widely expected.
Policymakers lowered growth forecasts, saying there are increasing signs that uncertainty associated with the EU referendum has begun to weigh on activity but left inflation projections roughly unchanged.
GDP growth is expected to slow to 0.3 percent in the second quarter of the year (0.5 percent in the previous estimate), bringing full 2016 forecast down by 20bps to 2 percent.
For 2017 and 2018, growth outlook was reduced by 10bps to 2.3 percent. Regarding inflation, policymakers left 2016 projection steady at 0.4 percent. ■