The Bank of England voted to retain interest rates at a record low of 0.25%, as well as reiterated a warning of higher inflation and sluggish wage growth risk that squeeze household budgets and spending in 2017.
The central bank’s monetary policy committee approved Thursday to retain low rates and maintain its quantitative easing. In August, policymakers slashed rates and bolstered its current asset buying program to beef up confidence following Brexit in June.
Based on the minutes of its meeting, BOE officials would continue to balance the effects of a weaker British pound increasing inflation against the probability of degenerating economic growth and employment rate.
Policymakers said there is no need to modify the existing policy since it released its projections for the economy in its November inflation report.
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