BOE signals rate can stay low as inflation weakness persists

London

BANK of England policymakers said the UK economy is withstanding international pressures, while also signalling they have room to keep the benchmark rate at a record low as inflation weakness persists.

In the minutes of its October meeting, the Monetary Policy Committee weighed risks of a further global slowdown against resilient domestic demand and consumer spending. It said the near-term outlook for inflation had weakened since August and price growth will probably stay below one per cent until spring 2016. Officials voted 8-1 to keep the key rate at 0.5 per cent, with Ian McCafferty maintaining his call for an increase.