The Bank of England has announced that the Bank Rate will remain at 0.1% for the month of August 2023. This decision was made following a meeting of the Monetary Policy Committee (MPC) and is in line with market expectations.
The Bank of England has kept the base rate at 0.1% since March 2020, when it was cut from 0.75% in response to the economic impact of the coronavirus pandemic. The MPC has also maintained its asset purchase program at £895 billion, which is designed to support the economy by providing additional liquidity to financial markets.
The Bank of England’s decision to keep the base rate at 0.1% reflects its view that the UK economy is still in a fragile state and that further monetary policy stimulus is needed to support economic activity. The Bank of England has also noted that inflation remains below its 2% target and that it expects inflation to remain subdued in the near term.
The Bank of England’s decision to keep the base rate at 0.1% is likely to be welcomed by businesses and households, as it should help to maintain low borrowing costs and support economic activity.