Bank of England Keeps Key Rate at 0.75%, Following Brighter Data

By Peter Nurse

Investing.com - The Bank of England decided to keep its monetary policy on hold Thursday, its base rate staying at 0.75%, with members of the Monetary Policy Committee noting signs of improved sentiment within the economy.

At 07:00 AM ET (1200 GMT), GBP/USD was trading at $1.3070, up from $1.3024 immediately before the decision. EUR/GBP was at 0.8426, down from 0.8436.

This decision was finely balanced, with 7 members voting to stand pat and 2 voting to cut.

At the beginning of January, a cut had been the market’s base case, but expectations had been pulled back amid signs of brighter spots in the U.K. economy.

For example, the U.K. employment rate stands at a record high of 76.3%, while the recent purchasing managers’ index indicated the country’s manufacturing and services sectors saw their best month for more than a year in January, as the uncertainty surrounding the general election and Brexit eased. House prices also ticked up strongly in January, according to the lender Nationwide.

Attention will now turn to the central bank’s press conference at 07:30 AM ET (1230 GMT), in what will be Governor Mark Carney’s last outing. He will be replaced by Andrew Bailey in March.

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