The Bank of England has kept interest rates on hold at 5.25 per cent in a “finely balanced” decision that dented Conservative hopes of a boost to personal finances just two weeks before the UK’s July 4 election.
But the BoE signalled a reduction was possible as soon as its next meeting in August, prompting traders to increase their bets on a summer rate cut.
Thursday’s seven to two decision by the Monetary Policy Committee, which was in line with economists’ expectations, leaves rates at a 16-year high.
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