The Bank of England unnerved investors by keeping interest rates steady at its policy meeting Thursday, but confirmed the possibility that there will soon be a stimulus package to help UK to deal with his decision to leave the European Union.
The pound strengthened more than 2 percent after the central bank announced it kept its overnight rate at 0.5 percent, despite general expectations that would lower the cost of credit for the first time in more than seven years.
the bank’s governor, Mark Carney, said two weeks ago he hoped that the institution would provide the economy more help during the summer .
But Thursday Carney and his colleagues said to wait three weeks to measure the intensity of the impact of “Brexit” the economy before deciding on the need for new stimuli.
“In the absence of a further worsening in the balance between supporting growth and return inflation to the target on a sustainable basis, most committee members expected that monetary policy is relaxed in August “the bank said in the minutes of its July meeting.
“The exact extent and nature of any stimulus measure will be determined during the round of August and the forecast inflation report,” to Grego.
Of the nine members of the bank that sets interest rates only one, Jan Vlieghe, who had shown increasingly favorable to provide more help to the economy
, voted in favor of a cutout. Chris Williamson, chief economist at financial data from Markit, said the central bank had chosen not to rush and to avoid “an abrupt reaction” to vote “Brexit”.
Most economists in a Reuters poll projected that the British central bank cut its main interest rate to 0.25 percent to protect to the economy impact “Brexit”.
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