UK central bank votes to keep interest rates at 0.75%, and warns that Brexit is making economic data volatile
- Latest: Bank leaves rates on hold
- OECD cuts 2019 and 2020 growth forecasts
- Last night, Federal Reserve cut rates by 25 basis points…
- ..and was called gutless by Donald Trump
The Bank of England has issued a statement accompanying its decision.
It warns that trade tensions are worsening (a point also made by the Fed last night, and the OECD this morning):
Since the MPC’s previous meeting, the trade war between the United States and China has intensified, and the outlook for global growth has weakened. Monetary policy has been loosened in many major economies. Shifting expectations about the potential timing and nature of Brexit have continued to generate heightened volatility in UK asset prices, in particular the sterling exchange rate has risen by over 3½%.
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Newsflash: The Bank of England has left UK interest rates on hold, at 0.75%.
It’s a unanimous vote, with all nine policymakers favouring no change today.