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BoE keeps interest rates unchanged, inflation in focus

Bank of England policy makers said the U.K. economy is withstanding international pressures, while also signaling they have room to keep the benchmark rate at a record low as inflation weakness persists. In the minutes of its October meeting, the Monetary Policy Committee weighed the risks of a further global slowdown against resilient domestic demand and consumer spending. The panel voted 8-1 to keep the key rate at 0.5 percent, with Ian McCafferty maintaining his call for an increase.
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BoE unlikely to rise interest rates until mid 2016

The Bank of England is likely to keep interest rates on hold until the middle of next year rather than raising them sooner, following a gloomier outlook for the global economy, according to the economic forecaster CEBR. The Centre for Economics and Business Research now believes a rise in May or August 2016 is more likely than one in February, its previous prediction. Signs of a global economic slowdown have been growing in recent weeks, especially in the world’s second-largest economy China and emerging markets. 
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Sterling continues its downtrend

There were no major data releases from the UK today,with traders still influenced by budget deficit figures. Predictions for a slowdown in the third-quarter GDP in the U.K. are also weighing on prices. Slower factory output, combined with volatile exports and weaker retail sales over the summer period are pointing towards a slowdown in the third-quarter GDP. 
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When will BoE rise interest rates?

There were no major data from the UK yesterday. Last week data showed British wages increasing at their fastest rate in over six years, keeping alive hopes that the BoE will tighten policy around the middle of next year, though inflation fell back to zero. Comments from the Bank of England’s Chief Economist Andy Haldane threaten to suppress support for the Pound) as we head into the weekend market close. 
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