UK Central Bank Holds Interest Rate Steady... "Inflation Rise Is Temporary"

[Asia Economy Reporter Changhwan Lee] The Bank of England (BOE), the central bank of the United Kingdom, held a monetary policy meeting on the 24th (local time) and kept the base interest rate at the lowest level of 0.1% as expected.

The BOE forecasted that the inflation rate could exceed 3%, but exceeding the target rate (2%) would be a "temporary phenomenon."

Experts predicted that the BOE would keep the interest rate unchanged while observing whether the recent inflation surge is a temporary phenomenon following the COVID-19 lockdowns and whether unemployment would rise if the government reduces employment protection policies.