BoE eyes 'modest tightening' to meet inflation target

MPC maintains rates 7-2

The Bank of England's Monetary Policy Committee (MPC) has voted to maintain interest rates at 0.75% by a majority of 7-2, with further rate cuts now being considered amid slowing growth and an expected fall in inflation.

In Thursday's (7 November) meeting, which also saw unanimous agreement to maintain corporate and government bond buying at £10bn, the bank opted to maintain the rate amid a CPI inflation rate of less than its 2% target at 1.7%. UK GDP growth shrinks to -0.1% in August The MPC's report said that while underlying UK GDP growth has "slowed materially this year", reflecting "weaker global growth, driven by trade protectionism and the domestic impact of Brexit-related uncertainties", the "existing stance of monetary policy is appropriate". With regard to CPI, the MPC expects this to dec...