Bank of England Holds Bank Rate at 0.50%

The Bank of England (BoE) maintained the Bank Rate at 0.50% and made no changes to the GBP 200 billion asset purchase program. The United Kingdom reported inflation of 4.4% in February this year, higher than the official inflation target of 2.00%. The BoE will come under increasing pressure to raise rates given the high levels of inflation and following the 25 basis point increase the ECB just announced. The BoE will likely be looking to check in on further economic data to decide how robust the recovery is before tightening policy.

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