LONDON – The Bank of England has kept its main interest rate at a record-low 0.5 percent as policymakers remained wary about global economic uncertainty.
Minutes released alongside the decision Thursday show that only one member of the nine-strong Monetary Policy Committee, Ian McCafferty, voted for an increase. The minutes to the Oct. 6 meeting cited his concerns over domestic cost pressures.
With inflation at zero percent, policymakers have little incentive to raise rates — as the bank's target is 2 percent. Economists say the bank will follow the Federal Reserve's lead when it comes to rates. The Fed is widely expected to raise rates in December.
Capital Economics' chief U.K. economist Vicky Redwood says it "still seems unlikely" the Bank of England will raise rates before the second quarter next year.