The MPC voted unanimously to keep the key rate unchanged. It maintains the gilt-purchase target at 435 billion pounds and the corporate-bond purchase target at 10 billion pounds.
The Bank of England is ready to ease monetary policy following the inflation developments. It drops its earlier intention to cut the key rate to a new record low, according to the Bank of England governor, Mark Carney.
BOE officials have ‘limited tolerance’ to above-target Consumer price index. The central bank now sees consumer-price growth rising above its 2 percent goal early next year. It said inflation will be at 2.5 percent in late 2019, the biggest three-year overshoot it’s ever predicted. Mark Carney declined to identify if there is a rate that officials would consider too high.