England yesterday kept its key interest rate at a record low 0.50 per cent in the first monetary policy decision since the Conservatives won Britain’s general election, reports AFP.
The meeting was held on Thursday and Friday but the outcome by the independent BoE was delayed due to last week’s vote that was won by Prime Minister David Cameron’s Conservative party. Borrowing costs are now likely to stay on hold for the rest of the year, economists said, owing to slowing economic growth and the prospect of more austerity from Cameron, who clinched an unexpected victory in the May 7 vote.
“The BoE’s Monetary Policy Committee (MPC)... voted to maintain Bank Rate at 0.50 per cent,” the British central bank said in a brief statement.
The nine-member panel also agreed to maintain its quantitative easing economic stimulus at £375 billion ($580 billion, 520 billion euros).
Economists said the MPC had chosen to continue its wait-and-see policy, particularly in light of an economic slowdown in the first quarter of 2015.