{"id":2130,"date":"2018-09-13T19:02:31","date_gmt":"2018-09-13T19:02:31","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/bank-of-england-leaves-rates-on-hold-amid-brexit-uncertainty\/"},"modified":"2018-09-13T19:02:31","modified_gmt":"2018-09-13T19:02:31","slug":"bank-of-england-leaves-rates-on-hold-amid-brexit-uncertainty","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/bank-of-england-leaves-rates-on-hold-amid-brexit-uncertainty\/","title":{"rendered":"Bank of England leaves rates on hold amid Brexit uncertainty"},"content":{"rendered":"\n<div property=\"articleBody\">\n<figure class=\"media-landscape no-caption full-width lead\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                <img loading=\"lazy\" decoding=\"async\" class=\"js-image-replace\" alt=\"Bank of England\" src=\"https:\/\/ichef.bbci.co.uk\/news\/320\/cpsprodpb\/130F6\/production\/_103407087_gettyimages-154742233.jpg\" width=\"976\" height=\"549\"\/><span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">Getty Images<\/span><\/p>\n<p>            <\/span><\/p>\n<\/figure>\n<p class=\"story-body__introduction\">The Bank of England has left interest rates on hold at 0.75% as expected but flagged &#8220;greater uncertainty&#8221; around the Brexit negotiations.<\/p>\n<p>The Bank&#8217;s Monetary Policy Committee (MPC) voted 9-0 to leave rates unchanged. <\/p>\n<p><a href=\"https:\/\/www.bbc.co.uk\/news\/business-45043776\" class=\"story-body__link\">A quarter of a percentage point rise last month<\/a> took rates to the highest level since March 2009.<\/p>\n<p>The European Central Bank also kept eurozone interest rates unchanged at 0% on Thursday. <\/p>\n<p>The MPC said in the minutes of its September meeting there were mounting fears about the UK leaving with the EU without a deal agreed.<\/p>\n<p>&#8220;Since the committee&#8217;s previous meeting, there had been indications, most prominently in financial markets, of greater uncertainty about future developments in the withdrawal process,&#8221; it said.<\/p>\n<p>The Bank&#8217;s regional staff reported that businesses were cracking down on costs and holding back on investment ahead of Brexit.<\/p>\n<ul class=\"story-body__unordered-list\">\n<li class=\"story-body__list-item\"><a href=\"https:\/\/www.bbc.co.uk\/news\/business-45481485\" class=\"story-body__link\">UK wages rise faster than expected<\/a><\/li>\n<li class=\"story-body__list-item\"><a href=\"https:\/\/www.bbc.co.uk\/news\/business-45470689\" class=\"story-body__link\">World Cup and hot weather boost UK growth<\/a><\/li>\n<\/ul>\n<p>However, it raised the forecast for UK economic growth in the third quarter from 0.4% to 0.5%, partly due to stronger consumer spending over the unusually warm summer.<\/p>\n<p>The MPC flagged heightened risks to global growth following trade tensions between the US and China and turbulence in some emerging markets.<\/p>\n<p>Sterling was flat at $1.3051 and \u20ac1.1221 after the decision was announced.<\/p>\n<figure class=\"media-landscape has-caption full-width\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                 <span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">PA<\/span><\/p>\n<p>            <\/span><figcaption class=\"media-caption\"><span class=\"off-screen\">Image caption<\/span><br \/>\n                <span class=\"media-caption__text\"><br \/>\n                    England basked in record temperatures this summer, which boosted consumer spending<br \/>\n                <\/span><br \/>\n            <\/figcaption><\/figure>\n<p>The minutes showed recent rises in economic and wages growth had not affected the MPC&#8217;s commitment to &#8220;gradual&#8221; and &#8220;limited&#8221; rate rises in the coming years, said Samuel Tombs at Pantheon Macroeconomics.<\/p>\n<p>Ruth Gregory at Capital Economics said expected two rate rises next year and another two in 2020, bringing rates to 1.75%, assuming a Brexit deal was struck and the economy held up well.<\/p>\n<p>&#8220;That would be above the market expectation for just two hikes over the next three years &#8211; but still consistent with the MPC&#8217;s guidance,&#8221; she said.<\/p>\n<p>Ben Brettell at Hargreaves Lansdown said: &#8220;Policymakers are firmly in &#8216;wait-and-see&#8217; mode having raised rates last month, and will be reluctant to even consider another move until they have a clear idea of what Brexit will look like. <\/p>\n<p>&#8220;Realistically May next year looks the first available opportunity to raise rates to 1%.&#8221;<\/p>\n<p>Last month the Bank signalled that rates would need to rise by about 0.25 percentage points over the next two or three years to bring inflation, which stands at 2.5%, back to target.<\/p>\n<p>September&#8217;s MPC minutes also revealed that the recent energy price cap announced by Ofgem would reduce inflation by more than expected over the course of 2019.<\/p>\n<\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.bbc.co.uk\/news\/business-45508563\">Source<\/a> by <a href=\"\">[author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Image copyright Getty Images The Bank of England has left interest rates on hold at 0.75% as expected but flagged &#8220;greater uncertainty&#8221; around the Brexit negotiations. The Bank&#8217;s Monetary Policy Committee (MPC) voted 9-0 to leave rates unchanged. A quarter of a percentage point rise last month took rates to the highest level since March &hellip; <\/p>\n","protected":false},"author":0,"featured_media":2131,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2130","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2130","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=2130"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2130\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/2131"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=2130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=2130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=2130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}