BOE announces its latest monetary policy decision - 20 June 2019
- Prior 0.75%
- Official bank rate votes 0-0-9 vs 0-0-9 expected
- Asset purchase target £435 billion
- Corporate bond target £10 billion
Here's the statement details:
- Cuts Q2 GDP estimate to 0.0% from +0.2% q/q previously
- Ongoing tightening of monetary policy at gradual and limited pace is needed
- This scenario assumes a smooth Brexit
- CPI likely to fall below 2% target later this year
- But inflation expectations remain well-anchored
- Sees increasing signs that wage growth rates might have leveled off
- Underlying economic growth in the UK appears to have weakened slightly in 1H 2019
- Downside risks have increased since May as global trade tensions intensify
The overall language remains the same for the most part with the only changes being notably the Q2 economic forecast as well as the risk outlook. But I guess, baby steps for the BOE and that basically covers all the relevant changes to the statement here.
The pound has taken a bit of a fall as this will shake confidence about the central bank's overall plan to proceed with gradual rate hikes but for now, that seems to remain their plan. But if global economic conditions continue to take a turn for the worse, you have to wonder if they can stick with that.
Cable has fallen from 1.2720 to just under 1.2700 currently, hovering around 1.2690 levels. It's a slight dip but nothing too alarming.
