Central Banks

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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.


BoECarney

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

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