The Bank of England left its key interest rate at 0.5 %, it is announced by the regulator. The decision matched the expectations of the analysts, interviewed by Reuters.
According to the meeting’s minutes, BoE Chief Economist Andy Haldane joined two other other members of Monetary Policy Committee to support an immediate rate hike up to 0.75%.
Six policymakers voted for keeping the rate, three ones – against. Nevertheless, according to the regulator’s official statement, all committee members agreed that any future increases in the Bank’s rate would gradual and limited.
Analysts expected the Bank of England to raise the key rate in May; but the regulator has announced it expects a stronger economic expansion after it decline in the first quarter. It will hike the interest rate gradually during the next few years. In may, the UK regulator lowered the expected economic growth in 2018 to 1.4%, from 1.8%.