The Bank of England has today held the Bank Rate at 0.75%.

The Bank’s Monetary Policy Committee (MPC) voted unanimously to maintain the rate.

A statement from the MPC read: “The broader economic outlook will continue to depend significantly on the nature of EU withdrawal, in particular: the form of new trading arrangements between the European Union and the United Kingdom; whether the transition to them is abrupt or smooth; and how households, businesses and financial markets respond.

“The appropriate path of monetary policy will depend on the balance of the effects on demand, supply and the exchange rate.

“The monetary policy response to Brexit, whatever form it takes, will not be automatic and could be in either direction.

“The MPC judges at this month’s meeting that the current stance of monetary policy is appropriate.

“The Committee will always act to achieve the 2% inflation target.”

Simeon Willis, CIO, XPS Pensions Group, said: “This result is unsurprising given that CPI has been trending down towards the 2% target over the course of the year, as confirmed yesterday with CPI of 2.3%, and the previous communications from the MPC has been that any rises will be gradual.
 
“The UK economy, whilst faring well, finds itself on a knife edge with the most pressing political issue of a generation around the corner.

“The MPC are well aware of this and are sensibly keeping their powder dry.”