UK inflation at a 14 year low, BoE to maintain rates

The inflation level in the UK has fallen terribly to 0.5%, a distant number from the optimum 2.0% needed by the Bank of England (BoE). In addition, the inflation level is expected to drop to 0 due to the low oil prices. As expected, Governor Mark Carney and his monetary policy committee (MPC) members cannot raise rates.

Interestingly enough, Mark Carney wrote a letter to the Finance Minister, George Osborne explaining why the UK is not experiencing deflation.

The inflation report can be found here.

Bank rates remain at 0.5% and stock of purchase assets at  £375 billion.