Nothing New From the BOE as Brexit Remains the Game for the GBP
Skerdian Meta•Thursday, March 21, 2019•1 min read
The meeting from the Bank of England is over now. They kept interest rates unchanged as expected with an unanimous vote and released the monetary policy summary. The GBP jumped around 45 pips higher after the event but has retreated lower now, giving back half the gains. Here are the highlights from the event:
- BOE leaves interest rates unchanged at 0.75% as expected
- MPC votes unanimously to keep rates unchanged with a 0-0-9 vote
- Asset purchase target remains at £435 billion
- Corporate bond target at £10 billion
Comments on the monetary policy summary
- Brexit could prompt policy moves in either direction
- Employment growth could now moderate significantly
- Underlying inflation broadly on track with forecast
- Gradual, limited tightening still probably needed.
- Monetary response to Brexit is not automatic and could be in either direction
- Brexit uncertainties continue to weigh on confidence and short-term economic activity
More or less, what we already knew. Brexit is the driving force for the GBP and the Bank of England right now so they can’t do anything until Brexit takes a clear direction. But as we hear, another delay will take place, either for a few months or until the end of the year, so the uncertainty keeps being dragged down the road.
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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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