Bank of England maintains interest rate at 0.1 pct despite rising inflation
Bank of England (BoE), Britain's central bank, announced an unchanged interest rate at 0.1 percent, despite prediction of inflation being temporarily above its 2 percent target in the months ahead, Trend reports citng Xinhua.
In a report issued by the BoE, it's Monetary Policy Committee (MPC) voted unanimously to maintain bank rate at 0.1 percent at its meeting ending.
The committee voted by a majority of eight to one to continue with its existing program of the British government bond purchases, maintaining the target for the stock of these government bond purchases at 875 billion pounds (1,222 billion U.S. dollars) and so the total target stock of asset purchases at 895 billion pounds (1,250 billion dollars), said the report.
The bank said that Britain's gross domestic product (GDP) was expected to recover strongly over 2021 to pre-pandemic levels, adding that "output in a number of sectors is now around pre-COVID levels, although it remains materially below in others."
In addition, the bank said the consumer price index (CPI) inflation was projected to rise "temporarily above the 2 percent target", being likely to exceed 3 percent for a temporary period, mainly due to developments in energy and other commodity prices, said the report.