The Bank of England have voted unanimously to keep their monetary policy unchanged with the base rate remaining at 0.75% following their latest meeting. Compared to the high drama of President Draghi’s remarks earlier this week and the Fed’s dovish turn yesterday evening the market reaction has been relatively subdued. Having said that, there has been some selling seen in the pound with rate setters acknowledging a slowdown in economic growth and also stating that the chances of a no-deal Brexit have risen. On the whole the message is following the theme set by the bank’s peers in recent days by turning more dovish and while Governor Carney and the MPC have stopped short of delivering as strong a signal as the ECB or the Fed, it does seem increasingly likely that the next move will be an interest rate cut rather than a hike.
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