Bank of England holds interest rates and slashes growth forecast

The Bank of England (BOE) held interest rates steady on Thursday, after a first-quarter slowdown in economic growth tarnished the case for higher borrowing costs.

The decision marked a sharp contrast to widespread expectations of just a few weeks ago, as Threadneedle Street voted 7-2 to keep rates on hold at 0.5 percent.

called for interest rates to be raised “somewhat earlier” and “by a somewhat greater extent” than the roughly two-and-a-half hikes already priced into the market over the next three years.

Yet, in the third Monetary Policy Committee (MPC) review of the year, Britain’s central bank left benchmark rates unchanged after a flurry of weaker-than-expected economic data and a Brexit-driven jump in inflation.

Weak economic data