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Bank of England holds Base Rate steady amid Brexit storm

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With the political and economic future of the country uncertain, 'no change' to interest rates this month came as no surprise
Bank of England holds Base Rate steady amid Brexit storm

The Monetary Policy Committee at the Bank of England has voted to keep rates on hold at 0.75% in February.

The nine-person committee made the unanimous decision on Wed 6th February.

The Bank of England noted that ‘UK economic growth slowed in late 2018 and appears to have weakened further in early 2019. This slowdown mainly reflects softer activity abroad and the greater effects from Brexit uncertainties at home’.

It added that CPI inflation fell to 2.1% in December and is expected to decline to slightly below the MPC’s 2% target in the near term.

The decision to hold the Base Rate means that mortgage borrowers on standard variable rates, discounted variable rates and tracker rates should not see any change to their mortgage pay rates in the short term.

Future outlook

Looking ahead the Bank said that the economic outlook depends significantly on the nature of EU withdrawal.

It added that the monetary policy response to Brexit,’whatever form it takes, will not be automatic and could be in either direction’.

In reassurance the Bank noted that any future interest rate rises will be ‘gradual and limited’.

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