Bank Of England To Stay Pat On Rates As UK Braces For Hung Parliament

The Bank of England is likely to keep its monetary policy unchanged at the first policy meeting held after Prime Minister Theresa May lost the Conservative parliamentary majority at the June 8 general election.

Policymakers are expected to unanimously decide to hold the interest rate at a record low 0.25 percent and the quantitative easing at GBP 435 billion.

June's meeting will be Kristin Forbes' last. After demanding a quarter point rate increase in the past two meetings, she is likely to drop her call on political uncertainty.

The minutes of the meeting will be simultaneously published on Thursday.

The bank reappointed its Chief Economist Andrew Haldane to the Monetary Policy Committee for a further three-year term on Monday.

And following her resignation, Charlotte Hogg's spot is still vacant. The MPC currently consists of only eight members.

The general election has raised the uncertainty over the policy and Brexit. Moreover, ongoing political uncertainty is consuming precious negotiating time with the European Union.

Data on the economic front showed that inflation has accelerated to a near four-year high of 2.9 percent in May. Average earnings grew only 1.7 percent in the three months to April, signaling a squeeze on consumers spending.

The statistical office had revised down its first quarter GDP growth to 0.2 percent from 0.3 percent.

The economy is experiencing a slower growth and higher inflation, a combination that makes policymakers' task difficult. Governor Mark Carney is set to speak at the Mansion House on Thursday evening.