Bank of England Holds, Leaves Door Open for August Hike

The Bank of England left interest rates on hold on Thursday, in what was a widely expected decision, but left the door open for an August rate hike as policymakers judged that a slowdown in the economy in the first quarter was temporary. The BoE’s Monetary Policy Committee was split on the decision to keep interest rates unchanged at 0.5% with three out of nine members voting in favor of a quarter-point increase. BoE Chief Economist Andy Haldane joined Michael Saunders and Ian McCafferty to vote in favor of a rate hike. It was the first time a BoE chief economist has dissented since 2011, fueling expectations for an August rate hike.