Bank of England holds interest rate steady

This decision came in light of the bank’s fears of the weak euro zone economy due to its close association with the UK economy, considering euro zone is the biggest trading partner.

The BoE inflation outlook also supports the slow pace for any change in the monetary policy, where the BoE expects to reach the 2% inflation target in three years, supporting the bank’s decision especially with the seen drop in commodity prices and especially oil.

The BoE is not expected to start monetary tightening soon, suppressing expectations that it will resort to raising interest rates early next year, expected after mid 2015.