The Bank of England voted 9 to 0 to maintain Base Rate at 0.75%. The asset purchase target of £435 billion with a corporate bond target £10 billion for bond purchases was voted unaminous.
The Bank of England voted 9 to 0 to maintain Base Rate at 0.75%. The asset purchase target of £435 billion with a corporate bond target £10 billion for bond purchases was voted unaminous.
Highlights:
Bank of England announces 20 June 2019 monetary policy decision
- Unchanged at prior 0.75%
- Official bank rate votes 0-0-9 vs 0-0-9 expected
- Asset purchase target £435 bn vs £435 bn expected
- Corporate bond target £10 bn vs £10 bn expected
Statement Breakdown
- Downside risks have increased since May as global trade tensions intensify
- Cut Q2 GDP estimate to 0.0% from +0.2% q/q previously
- Ongoing tightening of monetary policy at gradual and limited pace is needed
- This scenario assumes a smooth Brexit CPI likely to fall below 2% target later this year
- But inflation expectations remain well-anchored
- See increasing signs that wage growth rates might have leveled off
- Underlying economic growth in the UK appears to have weakened slightly in 1H 2019
Source: Bank of England