U.K. Banks Higher as BOE Holds Rates Firm

U.K.-based banks are ramping higher in early trading following news that the Bank of England said it would maintain current rates following the recent Brexit vote.

Specifically, the BOE said: The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target and in a way that helps to sustain growth and employment. At its meeting ending on 13 July 2016, the MPC voted by a majority of 8-1 to maintain Bank Rate at 0.5%, with one member voting for a cut in Bank Rate to 0.25%. The Committee voted unanimously to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion. Committee members made initial assessments of the impact of the vote to leave the European Union on demand, supply and the exchange rate. In the absence of a further worsening in the trade-off between supporting growth and returning inflation to target on a sustainable basis, most members of the Committee expect monetary policy to be loosened in August. The precise size and nature of any stimulatory measures will be determined during the August forecast and Inflation Report round.

Ticking higher early include Barclays plc (NYSE: BCS), HSBC Holdings (NYSE: HSBC), Lloyds Banking Group (NYSE: LYG), and Royal Bank of Scotland (NYSE: RBS).

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