Bank of Egland maintains Bank Rate at 0.75%, updates projections for activity and inflation

The Bank of Egland (BoE) announced its Monetary Policy Committee (MPC) voted unanimously to maintain Bank Rate at 0.75 percent at its latest meeting.

The MPC also voted unanimously to maintain the corporate bond purchases at £10 billion and UK government bond purchases at £435 billion.

In the minutes and the accompanying May Inflation Report, the BoE says:

• Q1 GDP likely boosted by stockpiling
• Underlying growth is 'slightly stronger' than expected in February
• More than one rate hike is needed to keep inflation in-check
• Inflation is seen increasingly above target at the end of the forecast horizon
• Economy should also be running above capacity at the time
• Energy price cap to push inflation above target in April
• GBP strength, energy base effects to push CPI below target around one-year horizon
• Economic outlook will depend significantly on Brexit
• BOE forecasts continue to assume a smooth transition
• Sees 2019 GDP of +1.5% (+1.2% in the February Report)
• Sees 2020 GDP of +1.6% (+1.5% in the February Report)
• Sees 2021 GDP of +2.1% (+1.9% in the February Report)
• Inflation is seen at 1.72% in one year's time (2.35% in the February Report)
• Inflation is seen at 2.05% in two years' time (2.07% in the February Report)
• Inflation is seen at 2.16% in three years' time (2.11% in the February Report)