As expected, the Bank of England voted unanimously to keep the Bank Rate at 0.75%. As it was one of the small meetings without an updated Inflation Report and a press conference and after last month's hike, this was not a big surprise. The Bank of England did not make any big policy signal shifts either. The statement still says that ' any future increases in Bank rate are likely to be at a gradual pace and to a limited extent' and that ' ongoing tightening of monetary policy would be appropriate' .
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November meeting review
The GBP/USD has been boosted strongly overnight on Brexit optimism headlines. The Bank of England kept monetary policy unchanged repeatedly saying no-del Brexit is not a likely scenario.
As was widely expected the Bank of England have voted unanimously to keep the current policy mix in place, with the base rate unchanged at 0.75%. The overall tone of the accompanying statement was fairly mixed and as thus, there’s been a fairly muted market reaction with the pound remaining close to its highest levels of the day.
September meeting review
While the decision of the Bank of England (BoE) Monetary Policy Committee (MPC) to keep the Bank rate unchanged at 0.75% after August rate hike is fully in line with the market forecast, judging that the Brexit risks increased makes the Bank conservative in line with the market expectations as well as the English tradition.
The Bank of England´s Monetary Policy Committee decided unanimously to keep the Bank rate unchanged in September. While the Bank of England decision was widely expected, the market saw a little immediate reaction to the news. The Bank of England MPC said in the statement that the projected pace of GDP growth was slightly faster than the diminished rate of supply growth, which averaged around 1.5% per year.
The Bank of England (BoE) and the ECB’s monetary policy meetings were held yesterday. Both the central banks left interest rates unchanged as widely expected. The BoE was seen preparing the markets for a no-deal Brexit. The Governor, Mark Carney will be extending his term as the central bank’s governor until 2020.
Brexit negotiations, exploring unknown territory
The progress in Brexit negotiations is slower than expected. The next round of negotiations, originally scheduled on September 18, is postponed by a week. Media reports suggested that UK's PM Theresa May was preparing to make an "important intervention" on the talks. While the UK urged the EU to be more flexible and to move to trade deals, the EU insisted that the “divorce bill” issue has to be resolved first. EU's chief negotiator Michael Barnier noted last week that he was “very disappointed” by the UK government as it “seems to be backtracking” on commitments to the bill.
While the hawkish members, mainly Michael Saunders and Ian McCafferty, would warn of strong inflation on the economy, the rest would consider the overall economic environment and uncertain outcome of Brexit as key factors to keep the monetary policy unchanged.
What is the BOE?
Founded in 1694, the Bank of England (BoE) is the central bank of the United Kingdom. Sometimes known as the ‘Old Lady’ of Threadneedle Street, the Bank’s mission is "to promote the good of the people of the United Kingdom by maintaining monetary and financial stability".
The Bank of England is responsible for keeping the UK’s economy on the right track. They operate monetary policy by moving Bank Rate up and down and, in certain circumstances, we also supplement this with measures such as quantitative easing.
Who is BOE's president?
Mark Carney is Governor of the BoE and Chairman of the Monetary Policy Committee, Financial Policy Committee and the Prudential Regulation Committee. His appointment as Governor was approved by Her Majesty the Queen on 26 November 2012. The Governor joined the Bank on 1 July 2013.
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The World Interest Rates Table reflects the current interest rates of the main countries around the world, set by their respective Central Banks. Rates typically reflect the health of individual economies, as in a perfect scenario, Central Banks tend to rise rates when the economy is growing and therefore instigate inflation.