The Bank of England kept interest rates steady on Thursday, including the possibility of Brexit still not hanging over the UK.
The central bank also reduced the growth forecast for the UK economy to zero in the second quarter of 2019, highlighting global trade risk and growing fears of a harmful no-deal Brexit.
Sterling expanded its losses against the euro in response to the news, and dropped 0.4% to 89.09 pence, while also falling from 1.22723 to 1.2694 against the dollar. 19659002] BOE officials had previously talked about the need for higher borrowing costs in it not for the advanced future, but Governor Mark Carney announced that the Central Bank's Monetary Policy Committee (MPC) had voted unanimously to keep the interest rate at 0.75%. [1[ads1]9659002] UK 10-year gold-plated yield fell to a day low of 0.809% after the decision. FTSE 100 expanded winnings, trading 0.5% higher during the afternoon session.
Bank of England the day after the Brexit poll June 24, 2016.
Ashley Stringer | CNBC
BOE maintained its announcement that prices would need to rise in a limited and gradual manner, provided that the UK could avoid leaving the EU without an agreement on 31 October.
The decision indicated that the BOE is not planning to reverse the direction in line with other major central banks, which have put a more dovish tone this week. On the introductory report in the second quarter of last year, Carney suggested that markets underestimate the central bank's rate and insisted that the next step would be up.
On Tuesday, European Central Bank President Mario Draghi indicated that more stimulus could be added to the euro area, while the US federal reserve on Wednesday kept interest rates stable but opened the door to a future price cut.
Britain's modest underlying inflation also contributes to the BoE's holding new interest rates while waiting for the outcome of the Brexit death, although some officials have said in recent weeks that increases may be needed more quickly than later.
UK Economic data published Wednesday showed the country's price cooling in May, with cost pressures in the factories falling to a three-year low. Consumer prices rose to an annual rate of 2% in May, which is in line with expectations.
Chief Economist Andy Haldane, BOE, earlier this month said that the time for an interest rate hike to reduce inflationary pressures was approaching, while MPC member Michael Saunders said Brexit was uncertainty was not a reason to delay tighter policies indefinitely.
The ECB and Fed tilt this week had offered the pound some breathing space. The British currency rose for another straight day on Wednesday, having fallen 5% since early May, with growing concerns that Boris Johnson, favorite to succeed Prime Minister Theresa May, would lead Britain out of the EU with or without agreement 31 October.