Bank of England set to hold rate at 16-year high
Investors hope the Bank of England will indicate whether interest rate cuts are on the horizon for the UK – Copyright AFP HENRY NICHOLLS
Ben PERRY
The Bank of England was set Thursday to keep its main interest rate at a 16-year high, resisting a cut as UK inflation cools at a slower pace than forecast.
The BoE is widely expected to maintain borrowing costs at 5.25 percent for a sixth meeting in a row, mirroring a wait-and-see approach by the US Federal Reserve and European Central Bank.
The BoE will announce its monetary policy at 1100 GMT following a regular meeting and on the eve of official data expected to show that the UK economy has exited a mild recession ahead of a general election due this year.
With the central bank set to keep the status quo, focus will be on accompanying statements for clues on when it may start cutting the interest rate.
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