Bank of England Keeps Benchmark Interest Rate at 0.1%
August 05 2021 - 7:42AM
Dow Jones News
By Jason Douglas
LONDON--The Bank of England held its benchmark interest rate
steady Thursday and said it expects annual inflation to reach 4% in
the final quarter of the year.
The pickup in inflation will prove temporary, the central bank's
Monetary Policy Committee said, with price-growth expected to slow
to its 2% target in the next two to three years.
The panel voted unanimously in favor of maintaining the policy
rate at 0.1% but one policy maker, Michael Saunders, voted to lower
the target for the BOE's government bond buying program to 830
billion pounds ($1.153 trillion), from its current GBP875 billion.
Mr. Saunders argued continuing with the current program risked a
more sustained overshoot of the BOE's 2% inflation goal.
Write to Jason Douglas at Jason.Douglas@wsj.com
(END) Dow Jones Newswires
August 05, 2021 07:34 ET (11:34 GMT)
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