In line with both our view and consensus, the Bank of England (BoE) kept both Bank Rate and the bond purchase programme unchanged. Although there was some speculation before the meeting whether MPC members Michael Saunders (most likely) or Andy Haldane could dissent, the decision was unanimous (9-0) to keep the policy rate on hold at 0.75%. The MPC reiterated its “gradual and limited” rate hike rhetoric, and that the future rate path was conditioned on a relatively smooth Brexit transition to an average of a range of outcomes. It was also reiterated that the response on different Brexit outcomes depends on the ... (full story)