Daily Management Review

Bank of England expresses less concern about inflation


According to Sarah Breeden, the deputy governor of the British Central Bank's financial stability unit, management at the Bank of England are now more concerned with determining how long to maintain the base interest rate at its current level than with the stability of inflationary pressures, writes MarketWatch.

Images George Rex
Images George Rex
"I have become less concerned that further policy tightening may be needed," she stated. "Instead, the Monetary Policy Committee (MPC) and I are now more concerned with determining how long the rate should remain at its current levels."

On February 1, the Bank of England maintained the benchmark interest rate at 5.25% annually. The Central Bank raised the rate at 14 consecutive sessions up to September, when it was maintained at this level, the highest since 2008.

At the last meeting, six of the nine MPC members—including Breeden—voted to maintain the rate. One member advocated a 25 basis points (b.p.) decrease, while the other two supported an increase of 25 b.p.

source: marketwatch.com