Bank of England keeps interest rates at record low of 0.1%

The Bank of England stood pat on interest rates on Thursday but said it was ready to take further action if needed amid the coronavirus pandemic.

Policymakers voted unanimously to keep the main interest rate at a record low of 0.1% and 7-2 to leave the £645bn bond-buying programme unchanged. Two members voted to increase the target for the stock of asset purchases by an additional £100bn.

The BoE said: "The timeliest indicators of UK demand have generally stabilised at very low levels in recent weeks, after unprecedented falls during late March and early April."

Berenberg analyst Kallum Pickering said: "While we expect the BoE to announce more asset purchases in the coming months, today was too early for that.

"As a major part of the stimulus which the BoE has already announced is still in the pipeline, the BoE can afford to wait, especially as key risks remain under control.

"While the decision was in line with the market’s and our expectation, the vote split on asset purchases provides a signal that more stimulus is likely."