Bank of England

Jim O'Neill has publicly ruled out following in the footsteps of Mervyn King and taking on the role of governor of the Bank of England.

The Bank of England's Monetary Policy Committee (MPC) has voted to hold the base rate of interest at 0.5%.

Bank of England monetary policy committee member Martin Weale has said he would prefer a base rate cut to further quantitative easing, were the Bank to unveil more stimulus measures.

The successor to Mervyn King will have an "unduly powerful role" thanks to Treasury plans to extend the powers available to the Bank of England (BoE), one of the bank's advisers has warned.

The Bank of England's Monetary Policy Committee (MPC) voted unanimously to keep rates on hold and maintain QE at £375bn in August but expressed fears over sterling's continued appreciation.

UK CPI inflation has risen to 2.6% in July, up from 2.4% in June, surprising economists who had expected a fall to 2.3%.

STRATEGY

In its latest quarterly inflation report, released today, the Bank of England has muddied the waters somewhat on its plans for further stimulus, leaving pundits wondering if a rate cut is on the cards.

The Bank of England has cut its forecast for economic growth this year to almost zero and has predicted inflation will be below target in the medium term.

The Bank of England (BoE) is set to cut economic growth forecasts to almost 0% for this year, amid a deepening double-dip recession.