Bank of England keeps interest rates on hold, flagging Brexit worries
A disorderly Brexit would put the BoE in crisis-fighting mode: the pound would fall, fanning inflation, while new trade barriers would halt growth
London — The Bank of England (BoE) said the uncertainty around Britain’s divorce from the EU was intensifying as it kept interest rates unchanged. The bank’s monetary policy committee, led by Governor Mark Carney, voted 9-0 to hold the benchmark at 0.75%. All but one of the 61 economists in a Bloomberg survey correctly predicted Thursday’s decision. “The broader economic outlook will continue to depend significantly on the nature of EU withdrawal,” the minutes of the meeting said. “The monetary policy response to Brexit, whatever form it takes, will not be automatic and could be in either direction.” The pound was little changed at $1.2610 as of 12.03pm in London. The BOE is also grappling with how to exit years of ultra-loose policy alongside the rest of the world’s biggest central banks. On Wednesday, the Federal Reserve lifted borrowing costs while cutting the outlook for more hikes in 2019. The Bank of Japan kept its policy unchanged on Thursday. Sweden raised its benchmark for ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.