By Jason Douglas
LONDON--The Bank of England held its benchmark interest rate steady Thursday and said it expects annual inflation to reach 4% in the final quarter of the year.
The pickup in inflation will prove temporary, the central bank's Monetary Policy Committee said, with price-growth expected to slow to its 2% target in the next two to three years.
The panel voted unanimously in favor of maintaining the policy rate at 0.1% but one policy maker, Michael Saunders, voted to lower the target for the BOE's government bond buying program to 830 billion pounds ($1.153 trillion), from its current GBP875 billion. Mr. Saunders argued continuing with the current program risked a more sustained overshoot of the BOE's 2% inflation goal.
Write to Jason Douglas at Jason.Douglas@wsj.com
(END) Dow Jones Newswires
08-05-21 0734ET