Bank of England in 'wait-and-see-mode' as it maintains interest rates at 0.1%

Core inflation reaches highest rate since 2011

The Bank of England’s Monetary Policy Committee (MPC) has voted unanimously to hold its key interest rate at 0.1%, while downgrading its GDP and inflation predictions for the rest of 2021.

The bank "is now in wait-and-see mode" said Hussain Mehdi, macro and investment strategist at HSBC Asset Management. "[It is] still providing a signal that tightening will be required in the coming quarters to keep inflation in check, but holding off any immediate action as it assesses near-term developments around Covid, the ending of furlough, and the persistence of supply-side disruptions including the recent spike in gas prices". The MPC also voted by a majority of 7-2 for the BoE to continue its existing programme of UK government bond purchases. The adjustment of the bank's fore...