BoE kept bank rate unchanged at 0.75% and held asset purchase target at GBP 435B as widely expected. Both decisions were made by unanimous votes.
The central bank noted that since last meeting US-China trade war has “intensified” and global growth outlook has “weakened”. Monetary policy has been “loosened” in major many economics. Domestically, Brexit developments are making data “more volatile”. Underlying growth has “slowed” but remains “slightly positive”. Brexit uncertainties continued to “weigh on business investment”. But consumption growth has remained “resilient”.
BoE also reiterated that “monetary policy response would not be automatic and could be in either direction.”. In case of smooth Brexit, “increases in interest rates, at a gradual pace and to a limited extent, would be appropriate”.