BOE again united in keeping policy on hold; U.K. unemployment drops

|By:, SA News Editor

As expected, the Bank of England's Monetary Policy Committee voted unanimously to keep interest rates at 0.5% and against more quantitative easing at a meeting earlier this month.

The BOE sees no immediate need to raise interest rates if its 7% unemployment threshold for such a move is reached soon. And when the time does come to increase rates, "it would be appropriate to do so only gradually," the bank says. (PR)

As it happens, U.K. unemployment for the three months to November dropped to 7.1% from 7.4% previously and came in below estimates of 7.3%. (PR)

The pound spikes and is +0.4% at $1.6536; the FTSE is flat.

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