LONDON Unlike the US Federal Reserve, the Bank of England did not lower borrowing rates on Thursday amid growing concerns about the status of the British economy. It also did not exhibit any indication that it would do so anytime soon.
After nearly two years of raises, the central bank ended its main interest rate hiking programme in August, leaving it at a 15-year high of 5.25%.
Three of the Monetary Policy Committee’s nine members voted in favour of a quarter-point raise, sending a strong message to the markets that rate cuts are not currently on the table. Six of the committee members opted to maintain rates on hold.
Bank Governor Andrew Bailey supported that, stating in a statement that interest rate policy would probably need to stay “restrictive for an extended period of time.”