NewsBreak - Bank of England Holds Rates at 0.75%

Investing.com – The Bank of England left interest rates on hold on Thursday. as it awaits further clarity on Britain’s preparedness for exiting the EU.

The BoE left its refinancing rate unchanged at 0.75%, as expected, in a unanimous vote. If Brexit uncertainty persists, inflation will likely become weaker, the bank said in its statement. Staff forecasts expect inflation to remain below 2% target for the rest of this year. Officials also reiterated that reaction to no-deal Brexit would not be automatic. Outlook for global growth has weakened due to US-China trade war; UK underlying growth has slowed but remains positive GBP/USD was trading at 7:00 AM ET (1100GMT) from around 1.2447 ahead of the decision, while EUR/GBP was at 0.8884 from 0.8888 earlier. The decision came a day after data showing that the annual rate of inflation in the U.K. dropped to a three year low of 1.7%

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