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13 September

By Ahmed Mamdouh

Category: Forex News

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BOE votes unanimously to holding interest rate

The Bank of England opted to hold the benchmark interest rate at 0.75 percent, moving in line with expectations, with a unanimous 9-0 vote from the monetary policy committee members.

The BOE also left the amount of asset purchases unchanged at $435 billion pounds.

Last month, the BOE decided to raise interest rates by 25 basis points for the second time in a decade, yet the coming rate hike might not occur before reaching a Brexit deal with the EU.

BOE minutes showed that policymakers have warned that uncertainty over Brexit has risen recently.

The central bank also expressed its worries over the rising risks of a full-blown trade war and its impact on emerging markets.

Ongoing tightening of monetary policy likely appropriate, yet any bank rate increases likely to be gradual and limited, the BOE mentioned.

The BOE has raised its third-quarter growth estimates to 0.5 percent from 0.4 percent in August.  

As of 11:06 GMT, the British pound traded slightly higher at $1.3064, as long traders aim to hold the pair’s price above $1.30.

Ahmed Mamdouh

Ahmed Mamdouh is the head of the English Fundamental Analysis at D1stp.com, with 9 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.