Bank of England Leaves Interest Rate Unchanged
June 20 2019 - 10:30AM
Dow Jones News
By WSJ City
The Bank of England left its benchmark interest rate unchanged
as it cautioned of rising trade tensions darkening the outlook for
the global economy. The BOE nevertheless said it expects to slowly
nudge up interest rates in the next two to three years if the UK's
planned exit from the European Union goes smoothly.
KEY FACTS
--- The BOE's rate setters voted unanimously to leave the UK
central bank's main policy rate at 0.75%.
--- That makes the BOE stand out among major central banks.
--- Both the ECB and Fed have signalled cuts ahead.
--- The panel said the British economy will likely slow in Q2
and inflation will soon drop below its 2% target.
---They said the British economy's prospects are closely linked
to Brexit.
Why This Matters
Several candidates vying to replace Theresa May as UK PM have
said they would be prepared to take the UK out of the bloc without
a deal if the EU won't reopen the agreement inked with May. They
argue the current withdrawal package would leave the UK too closely
bound to the EU.
A no-deal Brexit would likely cause severe disruption to the
British economy, economists say, scrambling the BOE's interest-rate
plans. The central bank said Thursday that it is ready to cut rates
or raise them in such a scenario, depending on how the economy
responds. Most economists expect officials' first move would be to
cut borrowing costs to support growth.
A fuller story is available on WSJ.com
WSJ City: The news, the key facts and why it matters. Be deeply
informed in less than five minutes. You can find more concise
stories like this on the WSJ City app. Download now from the App
Store or Google Play, or sign up to newsletters here
http://www.wsj.com/newsletters?sub=356&mod=djemwsjcity
(END) Dow Jones Newswires
June 20, 2019 10:15 ET (14:15 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Apr 2024 to May 2024
FTSE 100
Index Chart
From May 2023 to May 2024