August 4, 2017    1 minute read

BoE Keeps Rate, Cuts Growth Forecast

   August 4, 2017    1 minute read

BoE Keeps Rate, Cuts Growth Forecast

The UK’s central bank kept its record low 0.25 key interest rate steady, but the outlook for the economy and wages is looking gloomy.

Editor’s Remarks: The Bank forecasts the UK economy will grow by 1.7% this year and by 1.6% in 2018, against initial predictions of 1.9% and 1.7%. The pound reached an 11-month high against the greenback yesterday, on the back of positive figures from the services sector. Unemployment at a record low and inflation above the BoE’s target seemed to make a case for the first rate hike in a decade. However, the economy grew at its lowest rate in June since 2012, and inflation also took a dive. With Brexit insecurities growing, investors will be hanging on Mark Carney’s & Co every word for clues on where the economy is headed.

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