Financial institutions are now paying an interest rate of 0.5 percent, a historically low level, when they borrow money from the central bank.
Economists and analysts had expected the unrest after the British out of choice to move the European Union’s bank would lower the interest rate to 0.25 percent. This would be the first reduction since 2009.
Eight of the nine board members of the Bank of England voted, however, for maintaining the current level of interest rates. However, the expectation is expressed that the central bank in August is going to take more action.
After the interest rate decision equities fell slightly. The AEX index rose more than 450 points before the decision, but declined rapidly to 447 points. This is still above the closing level on Wednesday. Other European stock markets fell after the rate decision.
The value of the British pound rose from just $ 1.32 to $ 1.33
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