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Bank of England leaves rates unchanged, but cuts UK growth expectations on Brexit fears

Feb 7, 2019, 17:30 IST

The Governor of the Bank of England, Mark Carney, speaks to the Scottish Economics Forum, via a live feed, in central London, Britain March 2, 2018.Reuters/Peter Nicholls

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  • Bank of England leaves interest rates on hold.
  • The central bank's nine-member Monetary Policy Committee voted unanimously to leave rates at 0.75%, as had been widely expected.
  • Any future policy moves from the Bank of England are likely to be heavily influenced by the progress of Brexit, and the looming spectre of no deal.
  • Alongside the rate decision, the bank also released its quarterly Inflation Report, with Governor Mark Carney set to talk the press at 12.30 p.m. GMT (7.30 a.m. ET).

The Bank of England on Thursday left interest rates unchanged, as had been widely expected.

The central bank's nine-member Monetary Policy Committee voted unanimously to leave rates at 0.75%. Any outcome other than no change from the meeting would have been a significant surprise to markets.

Rates are likely to increase further in the coming years, but the timing of any rate hikes remains unclear, particularly with the looming spectre of a possible no deal Brexit hanging over the UK.

The bank previously warned in November last year that the worst case no deal Brexit could plunge the UK into its worst recession since the Second World War, and knock 8% off GDP in a single year.

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Alongside the rate decision, the bank also released its quarterly Inflation Report, with Governor Mark Carney set to talk the press at 12.30 p.m. GMT (7.30 a.m. ET).

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