Bank of England votes to stick to same rate of interest
The Bank of England has left interest rates on hold as it forecast a slowdown for UK economic growth in the third quarter amid increasing risks from turbulent global conditions.
Members of the Bank's Monetary Policy Committee (MPC) voted 8-1 to leave rates on hold at 0.5%, where they have been since 2009, mirroring the voting numbers last month.
Minutes of the MPC meeting revealed that the bank has now downgraded its forecast for UK gross domestic product growth in the third quarter from 0.7% to 0.6% after weaker than expected recent economic data - down from 0.7% growth in the second quarter. The MPC found that overall risks from the world economy had "probably increased" amid signs of slowdown in China, which has caused severe market turbulence in recent weeks.
UK economic recovery and an acceleration in wage growth in recent months has added to the argument for a rate hike to keep inflation below its 2% target.