Bank of England Governor Mark Carney dampened expectations on the timing of the first UK rate hike in nearly a decade yesterday, predominantly citing the recent slowdown in China and other emerging market economies as the main reason.
"The outlook for global growth has weakened since the August inflation report," the BOE's Monetary Policy Committee said in a statement.
The BOE highlighted that it is, by no means, in any rush to raise its benchmark interest rate and voted once again by a majority of 8 - 1 to hold at 0.5%, where it has been since early 2009.
In September, twelve-month CPI inflation stood at -0.1%, slightly over 2% below the inflation target being used by the BoE as a major trigger for increasing rates; this target is actually now not expected to be hit for another 2 years hence a rate rise should not be expected anytime in the near future, some experts now even saying it may not happen until the first quarter of 2017.
The result of this meeting has had the effect of crushing GBP against the USD, which may of course been the desired effect with Cable plummeting over 100 pips from 1.5380 to 1.5265 in 15 minutes.
For the full summary and minutes to yesterdays BoE meeting please see the official publication below: