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.

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.

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

Scottish parliament backs independence referendum
Speaking in Edinburgh on Brexit day she claimed that Britain's exit from the European Union "has put Scotland on the wrong road". A majority are also against a referendum next year, even if the SNP win the Scottish parliament elections in May 2021.

China battles coronavirus outbreak: All the latest updates
Several other countries have also evacuated their nationals and some global airlines have suspended direct flights to China. The seasonal flu, for example, kills 290,000 to 650,000 people per year, according to the World Health Organization (WHO).

'Does Prince Andrew need a gold-plated invitation delivered on a silver platter?'
Attorney General William Barr has vowed to aggressively investigate and bring charges against anyone who may have helped Epstein. Several of Epstein's accusers have said Maxwell recruited them to provide sexual favors for Epstein and some of his associates.

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.

Demi Lovato reveals the ‘beautiful’ moment she came out to her parents
The songstress "absolutely" wasn't sure at the time if her singing career was something she wanted to return to. Demi will be performing the National Anthem at the 2020 Super Bowl on Sunday, February 2 in Miami.

Roku Loses The Super Bowl Before The Game Even Starts
Our distribution contract with FOX Corp is set to expire on January 31 so FOX channels were removed from the Roku Channel Store. Roku carries Fox apps, including Fox Now, Fox Sports , Fox News, Fox Business, Fox Soccer, Big Ten Network and Fox Nation.

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.

SpaceX successfully catches one fairing half from latest Starlink launch
"We are in a position to delivery out up offering carrier (in mid-2020) because we possess these 12 launches". SpaceX launched in May 2019, the first batch of operational satellites into low Earth orbit.

Australian Open: Sofia Kenin says it's 'time to shine' against Garbine Muguruza
I think we saw in the semifinal that Barty and Kenin were very tight and nearly frozen out there in the first set. A foot injury had sidelined her for nearly a year after the 2016 Olympics, but Stephens stepped up on her return.

Arteta 'happy' with Arsenal's transfer window dealings
The Portugal global became the second signing of the Mikel Arteta era when he joined the club, and he can not wait to get started. The Athletic transfer journalist David Ornstein explained Arsenal's next move in the market as deadline day drew to a close.

California Congressman Introduces Kobe Bryant and Gianna Bryant Helicopter Safety Act
Our plan is to get with a company and grind up all those flowers into mulch and spread it around L.A. As of Thursday afternoon, the petition collected more than 500,000 signatures.

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.

Two people test positive for coronavirus in England
In China, where the virus was first identified, at least 213 people have died of the illness and there's been almost 10,000 cases. He added: "The flight which is in the air at the moment is not the end of our efforts".