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11/4/2021, 1:01 PM (Source: TeleTrader)
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BoE keeps key interest rate at 0.1%

The Bank of England's (BoE) Monetary Policy Committee (MPC) voted 7-2 on Thursday to leave Bank Rate at 0.1%. The MPC voted unanimously to maintain the stock of corporate bond purchases at £20 billion and voted 6-3 to keep United Kingdom government bond purchases at £875 billion.

In the third quarter of 2021, the UK GDP grew by lower-than-expected 1.2% mostly due to supply disruptions, the committee noted, but added that the economy will return to its level from the fourth quarter of 2019 in the first quarter of 2022. The unemployment rate declined to 4.5% in the quarter to August, while the annual inflation rate in the UK stood at 3.1% in September, down 0.1 percentage point compared to the figure recorded in August.

The MPC determined "that, provided the incoming data, particularly on the labour market, are broadly in line with the central projections in the November Monetary Policy Report, it will be necessary over coming months to increase Bank Rate in order to return CPI inflation sustainably to the 2% target."

Baha Breaking the News (BBN) / MS