Bank of England announces their 13 September monetary policy decision
- Prior 0.75%
- Official bank rate votes 0-0-9 vs 0-0-9 expected
- Asset purchase target £435 bn vs £435 bn expected
- Corporate bond target £10 bn vs £10 bn expected
Here's the statement details:
- Q3 GDP estimate raised to +0.5% q/q from +0.4% q/q in August
- Recent developments have increased downward risks to above-trend global growth
- Sees greater indications of uncertainty over Brexit withdrawal process
- Ongoing tightening of monetary policy likely appropriate
- Provided economy grows as expected
- Any bank rate increases likely to be gradual, limited
- Consumer spending supported by warm weather
- Businesses report tighter cost controls due to Brexit uncertainty
- Investment plans for next 12 months softened due to economic and political uncertainty focused on Brexit
All in all, I don't see any significant changes here by the BOE and the votes certainly confirm that there is no rate hike seen in the immediate horizon. There isn't much details on Brexit either so this is just about as non-event as you can get.
The only mild positive from the statement here is that the central bank sees a slightly higher Q3 GDP estimate than in August.
