BOE Holds Interest Rates Unchanged in 7-2 Vote

The Bank of England has kept rates unchanged at 0.25% and maintained its asset purchase targets. Despite a 7-2 vote on rates, the market is reacting with a spike in Sterling, driven by expectations of stimulus reduction. The Bank of England suggests the market is underpricing future rate hikes, with an 80% probability of a hike in February. However, market participants remain skeptical about the likelihood of imminent rate increases.

What is the current interest rate set by the Bank of England?

• 0.25%

• 1.00%

• 0.50%

• 0.75%

What is the Bank of England's asset purchase target?

• 600 billion sterling

• 200 billion sterling

• 435 billion sterling

• 500 billion sterling

Why did Sterling spike despite unchanged rates?

• As a result of a rate cut

• Because of anticipated stimulus reduction

• Due to a new asset purchase program

• Owing to increased corporate bond targets

What probability does the market assign to a rate hike by February?

• 100%

• 80%

• 50%

• 20%

What is the market's general sentiment about the Bank of England's rate hike plans?

• They think it will happen next year

• They are certain it will happen soon

• They believe it will happen within a month

• They doubt it will happen in the next six months