BoE projects that headline CPI inflation will continue to rise slightly in the near term, while expecting zero GDP growth in the last quarter of the year.
LONDON, Dec. 19 (Xinhua) -- The Bank of England (BoE) has held its benchmark interest rate at 4.75 percent, the United Kingdom's (UK) central bank said in a statement on Thursday.
At its meeting ending on Wednesday, the BoE's Monetary Policy Committee (MPC) voted by a majority of six to three to maintain the rate. Three members preferred to reduce it by 0.25 percentage points, to 4.5 percent.
The BoE pointed out that 12-month consumer price inflation (CPI) increased to 2.6 percent in November, which is "slightly higher than previous expectations," due to stronger inflation in core goods and food.
"Headline CPI inflation is expected to continue to rise slightly in the near term," said the BoE in the statement.
The Bank expected zero GDP growth in the last quarter of the year, weaker than the 0.3 percent growth predicted in November. According to the statement, the central bank also judged that the labor market is broadly in balance.
"The MPC is also monitoring the impact on growth and inflationary pressures from the measures announced in the Autumn Budget, and from geopolitical tensions and trade policy uncertainty," said the statement, noting that these developments have put "additional uncertainties around the economic outlook." ■