The Bank Of England Keeps Interest Rates Unchanged. Quantitative Easing Remains Unchanged.

Nine members of the Bank of England's Monetary Policy Committee (MPC) today voted on 8:1 to maintain the 0.5% interest rate unchanged and maintain the scale of 375 billion.

Morgan Stanley said this week that

The central bank may continue to keep its benchmark interest rate at a historic low.

Bloomberg survey also shows that this week's interest rate resolution will maintain the UK benchmark interest rate unchanged at 0.5%.

At the same time, the minutes released by the Bank of England meeting showed that "CPI is likely to be close to zero level within a few months, and its uncertainty will increase as oil prices fluctuate.

Britain

Being suppressed, it may be in consolidation.

It is still very likely that inflation will accelerate at about the end of the year.

"

The Bank of England also lowered its GDP growth rate from 0.7% to 0.6% in the three quarter today.

In the two quarter of the year, GDP grew by 0.7% in the UK in the tenth quarter, the tenth consecutive quarter, and the growth lasted for third years since 1995.

At the meeting last month, the Bank of England maintained its 0.5% interest rate unchanged, maintaining the scale of 375 billion yuan in quantitative easing, while reducing short-term inflation expectations, and only one member supported the increase in interest rates.

The Bank of England said, "the short-term inflation outlook is basically unchanged from August."

Last month, the Bank of England lowered its inflation expectations in 2015 and 2016 to 0.3% and 1.5%, after 0.6% and 1.6% respectively.

"The recent global situation has not changed MPC.

The core view of the committee, "the minutes of the meeting said.

"It is too early to expect the impact of overseas market risk on the UK, and we will closely observe it."

"Surprisingly, only 1 members supported the increase in interest rates, which is surprising. The number of votes and inflation expectations clearly reflects that we are not out of the woods yet."

Aberdeen Asset Management chief economist Lucy O Carroll said at the time.

Carney, the governor of the Bank of England, suggested last month that the decision to raise interest rates at the end of the year would be the focus of attention.

Ian Plenderleith, a former decision maker of the former Bank of England, said Monday that both the Federal Reserve and the Bank of England are close to raising interest rates and expect to increase interest rates later this year or early next year.

However, the yield of treasury bonds shows that investors do not think so. The spread of British 10 - year treasury bonds and the 10 - year treasury bonds in the United States is still hovering at the highest level in 9 years.

As of yesterday, the yield on British 10 - year treasury bonds was 1.875%, which was 57 basis points lower than the 2.445% yield of the 10 - year treasury bonds in the United States.

In March this year, the gap between the two was 44 basis points, the largest since July 2006.