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Deutsche Bank analysts note that in the middle of political turbulence in the UK, the Bank of England’s MPC voted to keep interest rates unchanged at 0.75%, in line with market expectations.

Key Quotes

“Regarding Brexit, the minutes said that “Brexit uncertainties had also continued to weigh on confidence and short-term economic activity, notably business investment.” In terms of the future path of monetary policy, the minutes said that “were the economy to develop broadly in line with its February Inflation Report projections, an ongoing tightening of monetary policy over the forecast period, at a gradual pace and to a limited extent, would be appropriate to return inflation sustainably to the 2% target at a conventional horizon.”