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8/1/2019, 1:00 PM (Source: TeleTrader)
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BoE keeps the interest rates unchanged

The Bank of England (BoE) voted unanimously on Thursday to maintain the benchmark Bank Rate at 0.75% in an effort to meet its 2% inflation target. The Monetary Policy Committee (MPC) also voted unanimously again to maintain the stock of corporate bond purchases at £10 billion and the United Kingdom government bond purchases at £435 billion.

The committee stated that global trade tensions have intensified and global activity has remained soft since May, leading to a substantial decline in advanced economies' forward interest rates and a material loosening in financial conditions. The increased chances of a no-deal Brexit further lowered UK interest rates and led to a marked depreciation of the sterling exchange rate.

The increased uncertainty related to the UK's withdrawal from the EU means that the economy could follow a wide range of paths over coming years, the MPC said, stating the appropriate path of monetary policy will depend on the balance of the effects of Brexit on demand, supply and the exchange rate.

Breaking the News / MD