Bank of England holds interest rates steady before Brexit

Outgoing governor of the Bank of England Mark Carney

Even if the Bank does keep interest rates on hold, BofA's Sharma expects the Pound to remain under pressure, with any strength proving short-lived in nature and any respite for the Pound is therefore expected to be limited.

Despite warning that Brexit would hold back growth in the long run, on the eve of Britain's formal departure the central bank's rate-setting monetary policy committee (MPC) voted to leave rates unchanged at 0.75%.

Prime Minister Boris Johnson's unexpectedly emphatic December 12 election win has boosted optimism, particularly among businesses who had cut investment while parliament failed to resolve the Brexit impasse.

With Brexit just hours away, the pound is on the march - but it's not down to optimism about the United Kingdom leaving the EU.

Tej Parikh, the chief economist at the Institute of Directors, said: "There is mounting evidence that the United Kingdom economy may have experienced a bit of a post-election bounce, so on balance the bank made the right call to hold interest rates for now".

Speaking at a press conference after the decision to leave all the BoE's monetary policy levers unchanged, Carney said survey data suggest United Kingdom economic activity has picked up sharply since the General Election late past year.

Sterling gained 0.8% to as high as $1.3245, its highest level in eight days on Friday.

New 'Fast And Furious 9' Group Poster Assembles Vin Diesel & The Crew
Vin Diesel and his family are ready for a fight in the brand new poster of Fast & Furious 9. Fast and Furious 9 is now scheduled to be released in theaters on May 22, 2020.

The decision, which comes a day before the United Kingdom leaves the European Union, marks the final time that Mark Carney will be at the helm at the bank.

"I don't have a regret", Carney said when asked if he had any with regard to monetary policy moves during his tenure.

Carney highlighted encouraging signs for the economy in early 2020, but said the BoE was waiting to see if this would be borne out in hard economic data. This is a genuine coin-toss meeting, with the 52% market expectation of a rate cut highlighting that we are nearly guaranteed volatility on the day.

Most economists think the economy will have done well to eke out growth any higher than 1 per cent previous year, which would be the lowest yearly rate since the country emerged from recession a decade ago. This compares to the bank's forecast of 0.1%.

"Policy may need to reinforce the expected recovery in growth", the committee said, according to the minutes of its meeting.

The verdict has potential to embarrass the chancellor, Sajid Javid, who used an interview with the Financial Times this month to say he would target economic growth of between 2.7-2.8%.

Carney, who became a British citizen during his time as BoE governor, took up the post in July 2013 with the United Kingdom economy struggling to recover from the global financial crisis and the BoE's main interest rate at a then record-low 0.50 percent. The two dissenters were Jonathan Haskel and Michael Saunders, in a repeat of December's meeting when they also voted to lower rates.

Related News:

Most liked

GOP Rep. Doug Collins ripped by Republicans over primary challenge against senator
As it stands now, multiple Republicans and Democrats could all be together on one November ballot, without party primaries. Isakson's retirement from the Senate at the end of December set up a political scramble for his seat.

Medicos prep Christmas Island for airlift
The Australian Medical Association has actually said that individuals would certainly be much better quarantined on the landmass. The detention centre on Christmas Island was reopened past year after a decade of being idled.

Aston Martin rescue deal agreed as F1 billionaire buys stake
Stroll is leading the consortium and he will become the 106-year-old company's executive chairman. Shares in the company surged 28.4 per cent to 516.9p in early trading on Friday.

Greta Thunberg applies to trademark her name
This takes numerous time and paintings, and when the basis is absolutely up and working I will be able to inform you extra. She insisted that the foundation would be "completely transparent", for instance, with regard to the taxes it has to pay.

Jennifer Lopez, Shakira to honour Kobe Bryant in Super Bowl halftime show
This will mark the first collaboration between Lopez and Shakira . "It's a lot of energy". "There are heartfelt moments". That's life and we have to carry on.

Ontario to announce new case of novel coronavirus
Sunnybrook discharged home the patient who was hospitalized last week with novel coronavirus. She will continue to be monitored, as well.

Tom Brady sparks rumors of leaving Patriots with cryptic Twitter post
He added that in the meantime, he's still decompressing from last season by spending time with his family. He's been around the Twitter block long enough to know how much an image like this would rile the masses.

Selena Gomez Looked Stunning In Curly Hair And Gold Halter Dress
Selena Gomez is hitting the interview circuit upon the release of her newest studio album Rare , and she's not holding anything back.

Japan speeds up new virus measures as more evacuees arrive
A third chartered flight brought back more than 190 people from Wuhan earlier Friday, after evacuating 416 on two earlier flights. He added that Chinese President Xi Jinping had committed to help stop the spread of the virus beyond its borders.

Chinese planes to bring overseas Wuhan citizens back to virus-hit city
In Singapore, Lee says that while the new coronavirus seems to be more infectious than SARS, it has also been less lethal. The quarantine will last 14 days - the incubation period for the virus - from when the plane left Wuhan, China, CDC said.

State Department, citing coronavirus outbreak, raises China travel advisory: 'Do Not Travel'
Many major airlines have suspended or reduced flights to China, while Mongolia and Russian Federation have shut their borders. Several countries, including the US , have started to evacuate citizens from Wuhan because of concerns about the coronavirus.

Trump trial end in sight as vote nears on more witnesses
Friday sees a critical vote in the Senate trial on whether new evidence and witnesses should be introduced. Democrats would need four Republicans to vote with them in order to call more witnesses for the trial.

Woman in custody after police-involved shooting at Mar-a-Lago
Police have two people in custody after a security breach at the Mar-a-lago estate ended in a police-involved shooting. A police chase ensued, with the local Highway Patrol troopers and a sheriff's office helicopter pursuing the vehicle.

Indian Police Rescue 23 Children Held in 11-Hour Hostage
According to reports, the man had earlier invited the children to the house on the pretext of his daughter's birthday. One of the children, a one-year-old infant, was released late on Thursday night, much before the man was killed.

KLM suspends flights to China
You may also visit our airports data page to track flights and see cancellations at over 200 airports in China. KENYA AIRWAYS: Kenya Airways said on January 31 it has suspended all flights to China until further notice.