Brexit uncertainty and the slowdown in global growth has weakened the economy and made an interest rate cut more likely, the Bank of England has said. The central bank said interest rates would remain at 0.75% after a unanimous vote of the monetary policy committee (MPC) on Thursday, but it signalled that further Brexit uncertainty amid a US-China tariff war could warrant a rate cut in the near future. Taking a tougher line on the impact of the UK’s decision to leave the EU than its previous analysis of the economy, the bank said it feared that Brexituncertainty was in danger of becoming entrenched, leading to a weaker outlook. In the minutes of its September meeting, the MPC said delays to an agreement on the UK’s trading relationship with the EU would harm consumer and business confidence. This trend would be made worse by the trade war between China and the US, which has had the effect of cutting the economic growth rates in both countries this year, the committee said....
The Bank of England (BoE) left interest rates unchanged at 0.75% on 20 September amid the prospect of another UK delay. The Brexit's central bank warned that UK uncertainty was damaging business investment and the economy. However, the BoE forecast the Brexit would avoid a recession, with gross domestic product expected to rise in the July to September period.