BoE faces "sliding door" moment as it holds the interest rate

Bank rate to remain 0.1%

The Bank of England’s (BoE) Monetary Policy Committee (MPC) has voted unanimously to maintain the bank rate at 0.1%, with experts giving the decision the nod of approval, claiming it is right to wait, but divided as to when the BoE will turn hawkish.

BoE has revised up its expectation for the level of UK GDP in 2021 Q2 by around 1.5% since the May Report, as restrictions on economic activity have eased. The MPC expect the impact of commodity price on CPI inflation will be transitory and the economy will have a temporary period of strong GDP growth and above-target CPI inflation, after which growth and inflation will fall back.  UK inflation jumps to 2.1% in May "There are two-sided risks around this central path," the report said. "It is possible that near-term upward pressure on prices could prove somewhat larger than expect...