Newspaper article The Evening Standard (London, England)

Pound Rises as Bank of England Holds Interest Rates at 0.5% in Surprise Move

Newspaper article The Evening Standard (London, England)

Pound Rises as Bank of England Holds Interest Rates at 0.5% in Surprise Move

Article excerpt

Byline: Nicholas Cecil Deputy Political Editor

THE BANK of England held its nerve today over fears of an economic slowdown by keeping interest rates at their historic low of 0.5 per cent.

The Monetary Policy Committee had been widely expected to cut them to 0.25 per cent or even 0.1 per cent. But its members voted 8-1 to hold rates.

However, minutes of the meeting showed most expect action to be taken next month when the MPC will have more information about the impact of the Out vote on the economy.

The minutes also pointed to the economy having been resilient in the run-up to the June 23 vote, with the Bank now expecting second-quarter growth to pick up to around 0.5 per cent, from 0.4 per cent in the previous three months.

The announcement at midday sent sterling jumping against the dollar and the FTSE 100 dropping below 6700.

A cut had been expected by many in the City following growing reports of the housing market, construction and company investment being hit by the Brexit vote. …

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