The Bank of England left the key interest rate on hold at 0.50% amid concerns that the risks from Europe may spillover into the United Kingdom. The asset purchase program remained unchanged, at GBP 375 billion amid growing fears that the European Central Bank might choose to go ahead and expand its own asset purchase program to keep borrowing costs low, especially in peripheral nations suffering from rising yields. UK Chancellor of the Exchequer George Osborne released the 2015 conservative budget to parliament earlier this week, marking the first conservative budget in years after the Tories managed to sweep the election, winning a majority of seats. The budget focuses on restoring the government to surplus and avoiding similar budgetary pitfalls that weighed heavily on indebted European peers. Commenting on the state of the economy, Osborne highlighted that UK growth remains the fastest among the G7 nations.
Bank of England Stays the Course
Daily Analysis - 10/07/2015