Bank of England follows US Fed to keep rates on hold

The Bank of England has left interest rates unchanged at 0.25 per cent in today’s monetary policy decision.

It has also kept government bond purchases at £435bn and corporate bond purchases at up to £10bn.

It follows the US Federal Reserve’s decision to also keep rates unchanged at its first meeting since the inauguration of US president Donald Trump.

Earlier this morning sterling topped $1.27, but went on to fall sharply to 1.2639 by mid morning.

The Bank has made no move on rates since its August cut; however, the market is currently pricing in a 50 per cent chance of a rate rise by the end of 2017.