BoE maintains Bank Rate at 0.75%, lowers 2019 GDP forecast

The Bank of England (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 its statement, the BoE says:

• its updated projections, set out in the accompanying August Inflation Report, do not include a no-deal Brexit possibility
• MPC continues to assume a smooth Brexit scenario. In such an outcome, increases in interest rates, at a gradual pace and to a limited extent, are seen to be appropriate
• monetary policy response to Brexit, whatever form it takes, will not be automatic and could be in either direction
• subdued near-term growth outlook reflects more entrenched Brexit uncertainty
• it estimates GDP growth to be flat q/q in Q2 2019, slightly weaker than anticipated in May
• it forecasts GDP growth of +0.3% q/q in Q3 2019
• FY 2019 GDP growth of +1.3% (previously +1.5%)
• FY 2020 GDP growth of +1.3% (previously +1.6%)
• FY 2021 GDP growth of +2.3% (previously +2.1%)
• inflation estimated at 1.90% in one year's time (previously 1.72%)
• inflation estimated at 2.23% in two years' time (previously 2.05%)
• inflation estimated at 2.37% in three years' time (previously 2.16%)