BOE Holds Key Rate Steady, Cuts Growth Forecast

The Bank of England has kept its interest rate unchanged at 0.25% and maintained its asset purchase program at 435 billion. The vote was six to two in favor of keeping rates steady. Market reactions show a slight decline in the sterling, with expectations of more tightening than currently priced in. The Bank's GDP forecast for 2017 is 1.7%, with a slight decrease for 2018. Inflation forecasts remain stable, but wage growth projections have been cut, indicating potential slack in the economy.

What decision did the Bank of England make regarding its interest rate?

• Kept it unchanged at 0.25%

• Decreased it to 0.1%

• Eliminated the interest rate

• Increased it to 0.5%

Who are the two members advocating for higher rates according to the minutes?

• Forbes and Vlieghe

• Carney and Haldane

• McCafferty and Saunders

• Bailey and Ramsden

What does the Bank of England suggest about the current market pricing?

• It is irrelevant to economic forecasts

• It is accurately priced

• It is underestimating potential tightening

• It is overestimating potential tightening

What is the Bank of England's GDP forecast for 2018?

• 1.7%

• 1.9%

• 1.6%

• 2.0%

How has the Bank of England adjusted its wage growth forecast for 2018?

• Reduced to 3%

• Remained at 3.5%

• Decreased to 2.5%

• Increased to 4%