The BOE’s Monetary Policy Committee has voted unanimously to maintain Bank Rate at 0.75%. The committee also voted unanimously to maintain the stock of corporate bond purchases and UK government bond purchases.

Key Highlights

• The pound is trading at $1.2115 now, down 0.37% on the day – similar to where it was just before the Bank of England rate decision and economic forecasts were published.
• Bank of England policymakers voted 9-0 to hold the key interest rate at 0.75%.
• Bank noted that the increased risk of a disorderly Brexit had led to a “marked depreciation of the sterling exchange rate”.
• BOE forecasted GDP growth of 1.3% for 2019 and 2020, down from 1.5% and 1.6% respectively in its previous projections in May. The forecasts assume that Britain avoids a disorderly Brexit.
• The Bank noted that Brexit uncertainty has become entrenched in the economy in 2019 and that this has pulled down the rate of economic growth. Our view on the economy is similar: we expect growth of 1.4% this year and 1.3% in 2020, on the assumption that a no-deal Brexit is avoided.
• If there is a smooth Brexit and the economy holds up, interest rates may well rise, the Bank of England said in its quarterly inflation report.
• On the other hand, if there is a downturn due to Brexit, the Bank could cut rates or take other action.

Click here for the report. Good luck!