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11/7/2019, 1:00 PM (Source: TeleTrader)
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BoE keeps interest rates unchanged

The Bank of England announced on Thursday that it is keeping the interest rates unchanged. The central bank's Monetary Policy Committee voted yesterday by a majority of 7-2 to maintain the Bank Rate at 0.75%. Jonathan Haskel and Michael Saunders were the only ones dissenting, advocating for a 25 basis point cut of the Bank Rate. The MPC also voted unanimously to maintain the stock of corporate bond purchases at £10 billion and United Kingdom government bond purchases at £435 billion.

The central bank noted that "underlying UK GDP growth has slowed materially this year," reflecting Brexit-related risks and subdued global growth pressured by trade protectionism.

However, after another extension of Article 50 was obtained recently, chances of a no-deal Brexit have "fallen markedly," the BoE underlined, which supports its expectation that GDP growth will pick up next year. In addition to that, easier UK fiscal policy and a modest recovery in global growth are also expected to contribute.

Baha Breaking News (BBN) / NI