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The Bank of England MPC kept rates unchanged at 0.75% and there were no changes to the asset purchase facility. According to analysts at Rabobank, as Brexit will continue to cast its shadow on the UK economic outlook, the central bank should deliver two rate cuts in 2020.

Key quotes

“The policymakers noted a pick-up up in sentiment since the election and will be monitoring closely the extent to which these early indications are sustained. Yet, according to outgoing governor Carney, it’s less a case of so far, so good; and more a case of so far, good enough.”

“We don’t think that the uncertainty around a disruptive change to the UK’s trading relationships will vanish anytime soon.”

“The uncertainty is hitting the economy hard, which is why we continue to expect two rate cuts in 2020.”