Bank of England has set interest rates unanimously
2019-08-01 12:43 pm | Resource: News | No Views : 41
The nine-member Monetary Policy Committee, chaired by Governor Mark Carney, unanimously voted to keep the interest rate at 0.75 percent, in line with economists' expectations.
Corporate bond purchases were kept at £ 10 billion and government bond purchases were £ 435 billion.
The Bank noted that increased uncertainty about the nature of Britain's exit from the EU meant that the economy could follow a wide range of tracks over the coming years. "The appropriate course of monetary policy will depend on the balance of Britain's exit from the EU on demand, supply and exchange rates."
The Bank of England said growth is expected to remain weak in the coming quarters, with uncertainty growing over the past few months.
Carney: Opportunities for Britain's exit from the EU have increased
Bank of England Governor Mark Carney said on Thursday that the chances of Britain leaving the EU without a deal have increased "significantly", an issue that will affect economic prospects and make GDP growth more volatile. He pointed out that the response of the Central Bank to developments in this area will not be automatic, and can be involved in either direction.
Speaking after the interest rate decision was announced, Carney added that the US-China trade dispute has deepened, contributing "more than previously expected" to increasing risks related to the slowdown in global growth, falling prices and a decline in the manufacturing sector.
The policy maker noted that the Bank of England expects lower investments in the second and third quarters. At the same time, local inflationary pressures have increased, with headline inflation likely to fall by 0.5 percentage points from the 2 percent target due to lower energy bills, Carney said.
Carney: The volatility remains as long as doubts remain
Bank of England Governor Mark Carney told reporters on Thursday that only one out of five local firms was prepared for the possibility of Britain getting out of the EU in an unregulated fashion and failing to set a course for interest rates on the issue. He warned that the pressures of fundamental economic expansion have eased and estimates that market volatility will continue until doubts are removed, including trade frictions.
The most likely scenario, which involves some kind of deal with the EU, has become less likely recently, according to Bank of England officials. Carney pointed out that different people mean different things when they do not talk about any deal, and claimed to be one of many factors in the economic outlook.
"There are limits to what the UK central bank can do if the country breaks down from the bloc," he said, stressing the focus on price stability through the inflation target of 2 percent.
The Bank of England does not have a collective opinion about the response to any deal
Mark Carney said families in the UK now have an appropriate approach to the possibility of leaving the country unraveled to the EU on future relations. Speaking on Thursday after the Bank of England left monetary measures unchanged, the governor estimated that consumers were "acting wisely" as spending remained within his reach. Policy makers said debt growth was not a concern. In response to a question about the response in the absence of a deal, he acknowledged that there is no collective position among decision makers in the central bank.
In the case of the so-called smooth exit of Britain from the EU, interest rates are expected to rise over the next few years, the chief policy-maker repeated and hinted at a "modest" increase in borrowing costs as a reaction. If the UK breaks down from the EU, the supply side is critical to the response.
The Sterling showed silent trading against its major counterparts in the European session on Thursday after the Bank of England left key interest rates unchanged and lowered its growth forecast.
We offer you the analysis of the US dollar against the Japanese Yen on Wednesday, April 17, 2019 with the most important expectations for the dollar against the Japanese yen on the market. Time frame Used - four hours The USD/JPY is moving in a bullish direction in the near term. USD/JPY is still facing resistance and selling pressure around 112.10 as the USD-JPY closed yesterday's session down below 112.00…
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