BoE: No big policy signal shifts – Danske Bank

The Bank of England voted unanimously to keep the Bank Rate unchanged at 0.75% yesterday and did not make any big policy signal shifts either, explains the research team at Danske Bank.

Key Quotes

“We still expect the Bank of England to hike around once a year and our base case is that the next hike will arrive in May 2019, so after the UK formally leaves the EU.”

“Our view is that a 'no deal Brexit' would most likely hit the economy also through lower demand due to lower business confidence, which would most likely force Bank of England to ease monetary policy by cutting the Bank Rate.”