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Bank of England leaves policy rate unchanged at 0.75% as expected

In a widely expected decision, the Bank of England's Monetary Policy Committee held the policy rate unchanged at 0.75% with a unanimous vote. The asset purchase facility remained steady at €435 billion as well. Below are some key takeaways from the monetary policy statement.

  • At its meeting ending on 19 December 2018, the MPC voted unanimously to maintain Bank Rate at 0.75%.
  • The Committee voted unanimously to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £10 billion. 
  • Since the MPC’s previous meeting, the near-term outlook for global growth has softened and downside risks to growth have increased. 
  • Brexit uncertainties have intensified considerably since the Committee’s last meeting. 
  • Sterling has depreciated further, and its volatility has risen substantially.
  • The further intensification of Brexit uncertainties, coupled with the slowing global economy, has also weighed on the near-term outlook for UK growth.
  • The broader economic outlook will continue to depend significantly on the nature of EU withdrawal.
  • The appropriate path of monetary policy will depend on the balance of the effects on demand, supply and the exchange rate.
  • The monetary policy response to Brexit, whatever form it takes, will not be automatic and could be in either direction. 

United Kingdom BoE MPC Vote Unchanged in line with forecasts (9)

United Kingdom BoE MPC Vote Unchanged in line with forecasts (9)
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