(BOE) The Bank of England maintained its benchmark rate at 0.1%, but said it could tighten policy to tame inflation which is seen rising above 4%.
Fig: UK Price Pressures
BOE maintained its asset purchases, which is set at 895 billion pounds or $1.2 trillion, by the end of the year. Deputy Governor Ramsden and Michael Sanders pushed for an end in the purchases as soon as possible.
The central bank says although considerable uncertainties persist, some developments strengthen the case for modest policy tightening.
Officials led by Governor Andrew Bailey agreed that any future policy tightening would start with a hike in rates.
UK’s inflation reached 3.2% in August and is seen rising further to slightly above 4% amid a slowing economic growth at the back of supply chain bottlenecks and challenges of hiring.
FTSE 100 is down -0.14%, GBPUSD is up +0.69%
