London CNN —The Bank of England paused its historic interest rate hiking campaign for the first time in nearly two years Thursday after inflation fell unexpectedly in August.
The Federal Reserve also kept rates on hold Wednesday, as did Switzerland’s central bank earlier on Thursday.
The Bank of England did not rule out further rate increases, however, although it said it expected headline inflation to “fall significantly” in the near term, reflecting lower energy and food inflation.
Economists polled by Reuters had forecast inflation would rise to 7% — from 6.8% in July — because of higher oil prices.
“There is an air of underlying weakness,” chief UK economist at Capital Economics Paul Dales said about July’s GDP data.
Persons:
Martin Beck, insolvencies, Capital Economics Paul Dales
Organizations:
London CNN —, Bank of England, Federal, Reuters, Office, National Statistics, Capital Economics Paul
Locations:
United Kingdom, —