The Bank of England (BoE) kept its policy rate unchanged at 0.5% and the quantum of Asset Purchase Facility (APF) was also retained at GBP 375 bn.
The Press release states that ".the committee reached its decisions in the context of the monetary policy forward guidance announced alongside the publication of the August 2013 Inflation Report...".
. We continue to believe that the first hike in policy rate could come in 2017, as UK unemployment rate is unlikely to fall to 7.0% before then (Please refer to our report titled "UK: Unemployment rate to fall to 7.0% in mid-2017?", dated August 26, 2013).
Please refer to the attached document for the detailed report
Regards,
ICICI Bank : Treasury Research
Contact:
Nikhil Gupta
+91-22-2653-1414 (ext 2180)
