Roundup: British central bank keeps interest rate on hold

The Bank of England (BoE) Thursday voted 8-1 to keep its main interest rate Bank Rate unchanged at 0.5 percent, and kept the quantitative easing (QE) policy at 375 billion pounds (or 581 billion U.S. dollars).

It is the 78th consecutive month that the central bank maintaining the ultra low interest rate unchanged.

Although the Monetary Policy Committee (MPC) decided to keep rates on hold, the Bank governor Mark Carney said it was "drawing closer."

In last month, Carney has said that the time for an interest rate rise was getting closer.

Ian McCafferty is the only member of BoE's MPC to vote for an increase in August's meeting.

However, some economists to say a rate rise could now be delayed as the near-term outlook for inflation is muted.

"The near-term outlook for inflation is muted. The falls in energy prices of the past few months will continue to bear down on inflation at least until the middle of next year," the MPC noted in the meeting minutes.

Samuel Tombs, senior UK economist at Capital Economics, noted that the minutes suggested that an interest rate rise is still not imminent.

"The Committee wants to be cautious and wait for price pressures to emerge before pressing the lift-off button," said Tombs.

Tombs predicted: "A majority will vote to keep interest rates on hold until the second quarter of 2016."

Martin Beck, senior economic advisor to the EY ITEM Club, comments: "Overall today's publications confirm our view that the chances of a 2015 rate hike are very low," said Beck. Endit