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Sterling Slips as UK Interest Rates are Held at 0.1%

The Sterling has slipped after the Bank of England have unanimously voted to hold interest rates at 0.1%. This decision was made after UK inflation recently exceeded its 2% target for the first time in more than two years. The BoE expects UK CPI Inflation to continue to rise up to 3% over the next few months, however they are insisting that this will be transitory and will quickly make it’s way back to the 2% target. Current quantitative easing will also continue at its set value or £875bn, which includes the £20bn programme of corporate bond purchasing. Out of nine votes, only Andy Haldane voted to reduce the target for bond-buying by £50bn.