British central bank keeps rates unchanged

Global Business

Richard Bestic2

Despite ongoing speculation about cutting rates, the Bank of England keeps the U.K.’s main interest rate at 0.5 percent. The Monetary Policy Committee voted 8-1 to keep rates unchanged yet some member expect the bank to take action next month.

CCTV America’s Richard Bestic has this report.

British central bank keeps rates unchanged

British central bank keeps rates unchanged

Despite ongoing speculation about cutting rates, the Bank of England keeps the U.K.'s main interest rate at 0.5 percent. The Monetary Policy Committee voted 8-1 to keep rates unchanged yet some member expect the bank to take action next month. CCTV America’s Richard Bestic reports.

A Credit Suisse survey revealed two thirds of companies planned to postpone or reduce spending in the U.K.

What indicators were available also pointed to low consumer confidence, data from retail information company Springboard indicating footfall significantly down.

But even with much post-Brexit data on the UK’s economy only out next month, Bank of England Governor, Mark Carney had still been hinting this week that the Monetary Policy Committee might further loosen the purse strings.

“The possibility that the economic outlook softening so that there’s less demand for credit for various reasons and if the outlook has worsened in the judgment of the MPC there could be monetary response if that’s consistent of its remit,” Mark Carney, Bank of England Governor said.

All this against the backdrop of political upheaval in Britain, as the country’s new Prime Minister, Theresa May, set about forming a new government in her own image and then beginning the long process of negotiating her way out of the European Union.


Nicholas Whyte discusses the European economy

To take a deeper look at the state of the European economy, CCTV America’s Rachelle Akuffo interviewed Nicholas Whyte, senior director of APCO Global Solutions in APCO’s Brussels office.