Jan Størup Nielsen, analyst at Nordea Markets, notes that the Bank of England has kept its monetary policy unchanged but has taken a clear step towards a mores dovish stand as political uncertainty intensifies.
Key Quotes
“The bank rate was maintained at 0.75% and the stock of government bonds financed by central bank reserves was kept unchanged at GBP 435bn. The decision to keep monetary policy unchanged was unanimous (9-0).”
“The pre-announced Brexit sensitivity analysis did not include a no-deal scenario. Therefore, the Bank of England keeps all options open regarding the policy response to such a scenario. By the end of the day they will obviously end up easing policy in a no-deal, but they still don’t want to promise it on forehand.”
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