The Bank of England is facing an increasingly difficult balancing act in setting an appropriate monetary policy for the UK. Inflation is overshooting its 2% target by quite a wide margin. 

British inflation hit its joint highest level in more than five years in August, complicating the Bank of England’s job this week of explaining why it is not raising interest rates.

THE long period of monetary easing appears to be coming to an end, apart from in Japan.

Financial markets are not expecting any increase in UK rates in the coming 12 months despite a pick-up in inflation to 2.9%.

Bank of England governor Mark Carney has warned the squeeze on British households has begun as Brexit-fuelled inflation outstrips wage growth.

The EU looks to be leaving the door open for a deal that could avoid some of the major downsides of a ‘hard’ Brexit, writes Oliver Mangan

Last week’s November meeting of the Bank of England’s Monetary Policy Committee (MPC) concluded in line with market expectations for no changes to policy.

A Bank of England policymaker has said he would not be surprised if the pound fell further, but that the Bank of England could overlook the effect of weak sterling on inflation, possibly for years.

The Bank of England kept interest rates on hold after last month's emergency cut, but said a further reduction was still on the cards despite signs of a bounce-back in the economy.

As expected, the Bank of England announced a 25 basis points cut in its bank rate to 0.25% from 0.50% following last week’s meeting of its Monetary Policy Committee (MPC).

The Bank of England has slashed interest rates for the first time in more than seven years and delivered an emergency package worth up to £170bn to ward off recession following the Brexit vote.

The July meeting of the Bank of England’s Monetary Policy Committee (MPC) concluded last week with the bank rate left unchanged at 0.5%.

London’s top-flight index rallied towards the closing bell as it was confirmed that Theresa May would be in post as prime minister by tomorrow after rival candidate Andrea Leadsom dropped out of the race.

As expected, the May meeting of the Bank of England’s Monetary Policy Committee (MPC) last week concluded with no changes to policy.

Bank of England governor Mark Carney revealed a Brexit vote could trigger a possible "technical recession" in the UK as he warned the fall-out could hit growth, jobs and see the pound plunge in value.

In normal circumstances, the Bank of England might be close to pumping more stimulus into Britain’s economy, given recent signs of a sharp slowdown in growth and a rise in the number of people out of work.

Sterling dropped yesterday after an extraordinary series of events, including a tweet from the Sky Television economics editor, helped pile on uncertainty for exporters ahead of the UK’s ‘in-out’ referendum on the EU in 10 weeks’ time.

Last week’s meeting of the Bank of England’s Monetary Policy Committee (MPC) concluded in line with market expectations, with no changes to policy. 

UK Chancellor of the Exchequer, George Osborne, took aim at the soft drinks industry yesterday, announcing a new tax on sugary drinks.

Sterling yesterday continued to slide from its recent heights against the euro, eroding some of the exceptional advantages that have propelled Irish exporters, as British output figures appeared to show that the strong UK currency is punishing its manufacturing industries.

A key Bank of England official has warned of the dangers of “lingering too long in the sun” with low interest rates in the latest sign that it is edging towards a hike.

A number of Bank of England rate-setters are moving towards voting for the first increase in British borrowing costs in over eight years, adding to expectations of a split among policymakers in August.

Bank of England governor Mark Carney has raised the possibility that the UK central bank could lift interest rates from their record low before the year is out, his strongest hint yet that the bank is moving towards tighter policy.

The Bank of England is taking a patient approach in its deliberations in relation to the timing and extent of interest rate increases, writes John Fahy.

The pound rose to its strongest level in a month against the dollar as the fastest increase in Britons’ wages since 2011 had traders rushing to reassess how soon the Bank of England may raise interest rates.

Interest rates look set to stay on hold at 0.5% today when the Bank of England announces its first post-election policy decision.

Interest rates are expected to be left on hold when Bank of England officials announce their last policy decision before the British General Election tomorrow.

The pound depreciated the most in more than four years against the dollar in the past week, amid speculation the Bank of England was moving toward higher interest rates more slowly than the Federal Reserve.

Six years of interest rates at the historic low of 0.5% were marked yesterday as the Bank of England once more kept the cost of borrowing on hold.

The Bank of England sees little need to raise interest rates this year, and stands ready to cut them if inflation dips more deeply into negative territory than expected, a new set of forecasts showed yesterday.

The UK economy put in a very solid performance last year. Recent GDP data for the final three months of 2014 showed that the economy grew by 0.5% in the quarter, writes Oliver Mangan.

Bank of England policy makers voted unanimously to keep interest rates on hold this month for the first time since July amid concerns about low inflation, minutes of their latest meeting revealed today.

Interest rates in the UK were left on hold today with low inflation and concerns about the economy holding off any imminent threat of a hike.

The Bank of England is expected to leave interest rates on hold tomorrow following its first monetary policy meeting of the year.

The Bank of England left interest rates on hold today as the timing of a first hike which had once been expected this year recedes into 2015.

The most recent GDP data for the UK economy shows that it continues to perform strongly.

The ‘Great Recession’ of 2008-2009 and the subsequent sluggish and uneven pace of recovery from it, has seen many central banks cut interest rates to record low levels of between 0% and 0.5%.

Bank of England governor, Mark Carney said the judgment on when to increase the benchmark rate from a record low has become "more balanced" in recent months.

The Bank of England kept interest rates on hold yesterday, as Britain’s economy continued to thrive, although risks remain to the recovery at home and abroad.

Inflation in the UK fell to 1.6% in July as fashion stores launched summer discounts and fierce competition between supermarkets helped keep a lid on food prices for the longest stretch in a decade.

Interest rates were held at 0.5% today as Bank of England policymakers met for the first time since figures showed the UK had emerged from the six-year downturn.

Interest rates are expected to be held at 0.5% this week as Bank of England policy makers meet for the first time since figures showed the UK had emerged from its worst downturn since the war.

The Bank of England stuck to its plan to nurse the economy back to full health with record low interest rates yesterday, despite a strong recovery and fast-rising house prices which could lead to a split among its policymakers soon.