Bank Of England Maintains Key Rate At 0.75% Amid Brexit Preparations

The Bank of England said Thursday it was keeping the key rate at 0.75 percent amid preparations for Brexit, which could now be postponed beyond March 29

MOSCOW (UrduPoint News / Sputnik - 21st March, 2019) The Bank of England said Thursday it was keeping the key rate at 0.75 percent amid preparations for Brexit, which could now be postponed beyond March 29.

"At its meeting ending on 20 March 2019, the [Monetary Policy Committee] MPC voted unanimously to maintain Bank Rate at 0.75%," the bank said in a press release.

The bank's monetary police is tailored to the 2-percent inflation target, the press release said.

"Shifting expectations about the potential nature and timing of the United Kingdom's withdrawal from the European Union have continued to generate volatility in UK asset prices, particularly the sterling exchange rate. Brexit uncertainties also continue to weigh on confidence and short-term economic activity, notably business investment," the bank said.

The financial institution remarked that the monetary policy response to Brexit would not be "automatic."