BoE holds rates at 0.25% but further cut possible later this year

First rate cut last month

The Bank of England has held interest rates at 0.25% this month, but said there may be further cuts to come despite the immediate impact of the Brexit vote on the UK economy not being as bad as expected.

The Bank's Monetary Policy Committee (MPC) voted unanimously by 9-0 to keep rates at 0.25%, after they were cut from 0.5% last month, and continue its asset purchase programme. In the minutes of its latest meeting, the MPC said since its August Inflation Report, a number of indicators of near-term economic activity in the UK have been somewhat stronger than expected. "The Committee now expect less of a slowing in UK GDP growth in the second half of 2016," it said. It anticipates CPI inflation to rise to around its 2% target in the first half of 2017, consistent with the August Infl...