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Bank of England votes unanimously to keep policy unchanged

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Staff Writer | Thursday December 15, 2016 8:25AM ET
Mark Carney BoE
Britain   Inflation may overshoot its 2% target

The Bank of England voted unanimously to stand pat on policy measures, saying little has changed since November's inflation report.


The Monetary Policy Committee decided to leave interest rates at 0.25% and asset purchases at £435bn, in a move widely expected by analysts.

In the minutes of the policy meeting, the Bank pointed to November's inflation report in its decision to keep measures unchanged.

"A slowdown in growth remained likely, but there had been little news since the time of the November inflation report about domestic activity and, although the near-term global outlook had improved, this was counterbalanced by more elevated risks."

However, the Bank said inflation may overshoot its 2% target by less than it forecast in November in light of the recent appreciation in Sterling. The pound has strengthened 6% on a trade-weighted basis since last month's inflation report.

The BoE reiterated that it was ready to tighten or loosen policy if needed to respond to any changes in the economic outlook as Brexit deliberations continue.

 

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