The Bank of England (BoE) has announced an unchanged interest rate at 0.1 per cent, despite prediction of inflation being temporarily above its 2 per cent target in the months ahead.
In a report issued by the BoE on Thursday, it’s Monetary Policy Committee (MPC) voted unanimously to maintain bank rate at 0.1 per cent at its meeting ending on Tuesday, reports Xinhua news agency.
The committee voted by a majority of eight to one to continue with its existing program of the government bond purchases, maintaining the target for the stock of these government bond purchases at 875 billion pounds and so the total target stock of asset purchases at 895 billion pounds, said the report.
The bank said that the UK’s gross domestic product (GDP) was expected to recover strongly over 2021 to pre-pandemic levels, adding that “output in a number of sectors is now around pre-Covid levels, although it remains materially below in others.”
In addition, the bank said the consumer price index (CPI) inflation was…
