Bank of England leaves policy rate unchanged at 0.75%

• Bank of England holds policy rate steady at 0.75%.
• Repeats response to Brexit could go in either direction.
• BoE leaves Asset Purchase Facility unchanged at £435 billion.

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.  

“Policymakers vote 9-0 to hold rates at 0.75%.”

“Gradual and limited increase in interest rates appropriate, but needs some recovery in global growth in addition to previous smooth Brexit assumption.”

“Monetary policy response to whatever form Brexit takes will not be automatic, rates could go in either direction.”

“Global trade tensions have intensified since May and global activity has remained soft.”

“Weaker short-term growth outlook also reflects more entrenched Brexit uncertainty.”

Markets are now waiting for Governor Carney to deliver his remarks on the policy outlook at 11:30 GMT.

About the BOE interest rate decision

BOE Interest Rate Decision is announced by the Bank of England. If the BoE is hawkish about the inflationary outlook of the economy and raises the interest rates it is positive, or bullish, for the GBP. Likewise, if the BoE has a dovish view on the UK economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.