Bank of England is Steady on Interest Rates

The Bank of England has held their interest rates steady at 4.5 per cent for the sixth month in a row, a decision widely expected by financial markets. There was no change and no surprise to the markets given there was evidence of modestly stronger economic activity and a more robust housing market in England as of late. The British Pound steadied following the release of the rate decision details after the Pound had dipped earlier in the trading session on disappointing British trade data.

No reasons for the decision was given, following tradition when no change has been made to the interest rates: or what they call the "repo" rate - the rate of interest at which the Bank of England lends to commercial banks. However minutes to the meeting will be published on Wednesday February 22. The Bank of England has a quarterly inflation report scheduled for release on February 15, which will provide updates of its forecasts on economic growth and inflation, should offer clues as to the bank's future intentions regarding monetary policy.