Bank of England Monetary Policy Decision

posted in: Monetary Policy, Notes | 0

Business affected by uncertainties

“Business investment is being affected by uncertainties around Brexit, but it continues to grow at a moderate pace, supported by strong global demand, high rates of profitability, the low cost of capital and limited spare capacity…. Uncertainties associated with Brexit are weighing on domestic activity, which has slowed even as global growth has risen significantly.”

Rates raised, QE continues

“…the MPC voted by a majority of 7-2 to increase Bank Rate by 0.25 percentage points, to 0.5%. The Committee voted unanimously to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £10 billion. The Committee also voted unanimously to maintain the stock of UK government bond purchases, financed by the issuance of central bank reserves, at £435 billion.”