The Bank of England voted 9 to 0 to maintain Base Rate at 0.75%. The asset purchase target of £435 billion for corporate and UK government 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 for corporate and UK government bond purchases was voted unaminous.
Highlights:
Bank of England announces 13 September 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
- Q3 GDP estimate raised to +0.5% q/q from +0.4% q/q in August
- Recent developments have increased downward risks to above-trend global growth
- Sees greater indications of uncertainty over Brexit withdrawal process
- Ongoing tightening of monetary policy likely appropriate provided economy grows as expected
- Any bank rate increases likely to be gradual, limited
- Consumer spending supported by warm weather
- Businesses report tighter cost controls due to Brexit uncertainty
- Investment plans for next 12 months softened due to economic and political uncertainty focused on Brexit
Source: Bank of England