Bank of England Surprises Investors with No Change to UK Interest Rates

 

The Bank of England has left the cost of borrowing unchanged in Britain – for now.

The main interest rate stays at 0.5 percent where it has been for more than seven years.

Governor Mark Carney has signaled there will be more stimulus during the summer, but he has expressed concern about what a big interest rate cut would do to the profits of UK based banks.

He has also said he would not want to follow the example of the European Central Bank and the Bank of Japan by cutting rates below zero.

Action is likely on August 4 when the Bank of England (BoE) is due to release its latest Inflation Report along with new growth forecasts. 

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Source: euronews.