Interest Rates Held

Published / Last Updated on 13/09/2018

Bank of EnglandToday, the Bank of England Monetary Policy Committee (MPC) voted to keep interest rates at a 0.75% pa. 

Interest rates were increased in last month after the November 2017, that first increase since 2007.

The MPC forecast for economic activity is little changed: GDP is expected to slow on the year on average with Brexit uncertainty. 

The MPC sighted global trade war tensions and slow down in emerging markets adding presssure to Brexit meaning by majority, there was no vote to change rated.

Guess what the £ did?  £ weakened marginally.

Guess what the FTSE 100 did?  FTSE 100 remained flat with a marginal up switch given the FTSE 100 is largely made up of currency sensitive stocks and overseas earnings.

We believe the Bank of England will hold rates at 0.75% pa until more is known on any Brexit deal or no deal, possibly to be agreed by November.