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NEW - Dovish Bank of England keeps rates and asset purchases on hold, but also indicates rates lower for longer in “further period of entrenched uncertainty”.
Bank included new language about “political events” leading to continued uncertainty, against weak global background, meaning slower growth and inflation.
Also specifically refers to the passing of the Benn Bill in minutes lowering perceived chance of No Deal/ affecting markets
Also specifically refers to the passing of the Benn Bill in minutes lowering perceived chance of No Deal/ affecting markets
- Bank continues to describe No Deal as leading to another sterling fall, rise in inflation, and slower economy - but that the Benn Bill has lowered market perceptions of it - rates up or down depending.
A “smooth Brexit” ie deal would lead to “gradual and limited” rate rises.
A “smooth Brexit” ie deal would lead to “gradual and limited” rate rises.
Bank also now assuming modest 0.2% growth in current quarter - which would mean no recession
...and Bank also assumes that Spending Round boost would up growth over 3 years by 0.4%
Bank also says despite “acute volatility” in US repo markets “there had been no spillovers to UK money markets”
