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Bank of England holds off on raising interest rates

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  • Economy
  • 6 months ago
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The Bank of England will hold off on raising interest rates as a result of the agreement to extend the deadline for the U.K.’s withdrawal from the EU until October 31.

The MPC (Monetary Policy Committee) which is led by the BOE’s chief Mark Carney voted unanimously to keep interest rates unchanged at 0.75%, its first meeting since PM Theresa May managed to secure an extension on the Brexit deadline.

The central bank revised up its 2019 growth forecast to 1.5% from 1.2%, as first-quarter GDP growth is expected to have picked up to 0.5%, from 0.2% in the fourth quarter of 2018, stronger than projected in its February report.

The BOE’s optimistic outlook is due to better than expected growth in the U.S., EU and China.

However, Carney did stress that there may be a need to increase rates looking ahead.

If the world unfolds broadly as consistent with this forecast, then it will require greater withdrawal of monetary stimulus than is currently implied, it just didn’t require it at this meeting.”

 

 

 

Source: Smart Trend Team