Bank of England keeps rates on hold

The Bank of England has voted overwhelmingly to keep interest rates on hold at 0.50%. Only one MPC member voted in favour of a move to lower the national interest rate by 0.25%. Both UK Gilt and Equity indexes sold off in the wake of the announcement, as markets widely expected a 0.25% reduction as a pre-emptive move to provide fiscal stimulus for the UK economy post the historic decision to leave the Eurozone. Markets are now looking forward three weeks to the BoE’s August meeting where they believe the central bank will have had time to digest a few more data points and economic indicators before making the 0.25% cut.