Bank Of England Maintains Current Interest Rates But Hints Of Another Rate Cut This Year

The Bank of England on Thursday voted to maintain its 0.25 percent interest rate but hinted a further cut could occur before the end of the year.

The Bank of England lowered its key interest rate on August 4 to 0.25 percent from 0.50 percent. The central bank noted at that time that economic indicators "have all fallen sharply" and a similar sentiment was reiterated following its September meeting on Thursday.

According to Bloomberg, although central bank members noted that recent economic data has surprised "slightly to the upside," their longer-term view of the "contours of the economic outlook" hasn't changed.

Related Link: GBP/USD Little Changed, Focus On BOE

Policy members also suggested that if the outlook in November remains "broadly consistent" with last month when it introduced a new stimulus package, then a "further cut in bank rate to its effective lower bound" is likely.

The central bank could slash its rate to close to, but just above zero.

The next scheduled announcement on interest rates is set for November 3, and the central bank will also release at that time an updated forecast for inflation and growth.

The British pound shed around 0.20 percent following the bank's meeting and was trading at $1.3194 — roughly $0.04 higher than the post-Brexit low of $1.2798.

Posted In: Bank Of EnglandBank Of England Interest RateBoEcentral bankCentral bankingCentral BanksEnglandNewsEurozoneGlobalEcon #sMarkets

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.