The BoE responded to the Brexit vote by cutting interest rates to record low of 0.25% in August and restarted its massive bond-buying programme for the first time since 2012. "Monetary policy can respond, in either direction, to changes in the economic outlook as they unfold to ensure a sustainable return of inflation to the 2% target." Thursday's change in stance could please Prime Minister Theresa May, who said last month that the BoE's ultra-loose monetary policy had "bad side effects" for savers. Last month he said he would not "take instruction" from politicians on how to meet the Bank's inflation target. The BoE said the impact of sterling's fall on inflation "will prove temporary, and attempting to offset it fully with tighter monetary policy would be excessively costly."

Source: The Edge Markets November 03, 2016 13:26 UTC