Bank of England’s Policy Settings Unchanged
March 21, 2019
The Bank of England as expected did not change its 0.75% Bank Rate, which earlier had been raised twice by 25 basis points, initially in November 2017 and then in August 2018 to 0.75%, highest since March 2009. Nor were quantitative policy tools modified, and both decisions were made unanimously as expected. In a released statement from the Monetary Policy Committee, officials speak of mixed data signals since their last meeting but assert that the findings expressed in their February Inflation Report remain essentially on track. Forward policy guidance in today’s statement asserts that
were the economy to develop broadly in line with those projections, an ongoing tightening of monetary policy over the forecast period, at a gradual pace and to a limited extent, would be appropriate to return inflation sustainably to the 2% target at a conventional horizon. The economic outlook will continue to depend significantly on the nature and timing of EU withdrawal, in particular: the new trading arrangements between the European Union and the United Kingdom; whether the transition to them is abrupt or smooth; and how households, businesses and financial markets respond.
Copyright 2019, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of England
ShareThis
