BlockBeats News, March 19, the Bank of England on Thursday unanimously voted to keep interest rates unchanged, marking the first time in four and a half years that the Bank of England has made a decision without any members dissenting. The atmosphere of this meeting underwent a significant shift. The Middle East conflict disrupted production activities in the world’s most important oil-producing region and led to disruptions in oil tanker shipments through the critical Strait of Hormuz. Rate-setters opened the door to a possible rate hike, with Governor Bailey warning that policy must “address the risks of potentially more persistent impacts on UK CPI.”
In another statement, he added: “Whatever the outcome, our responsibility is to ensure that the inflation rate returns to the 2% target level.” The Bank of England removed the reference from its February statement that “the base rate could be further reduced.” The Bank of England’s most dovish member, Tenreyro, said that if there is a prolonged energy supply crisis, it may be necessary to raise rates. Several rate-setters indicated that if the conflict did not escalate, they would have supported measures to lower borrowing costs. (FXStreet)
