Bank of England ends the year by leaving rates unchanged

Reuters/Peter Nicholls

The Governor of the Bank of England, Mark Carney.

• Bank of England ends the year by leaving leaving interest rates unchanged, as had been widely expected.
• The central bank's nine-member Monetary Policy Committee voted unanimously to leave rates on hold at 0.75%.
• Rates are widely expected to increase further in the coming years, but the timing of any rate hikes remains unclear, with Brexit muddying the waters.

The Bank of England ended the year on a tepid note on Thursday, leaving interest rates unchanged, as had been widely expected.

Meeting less than 24 hours after the US Federal Reserve raised rates for the fourth time in 2018, the central bank's nine-member Monetary Policy Committee voted unanimously to leave rates on hold at 0.75%.

Any outcome other than no change from the meeting would have been a significant surprise to markets.

Rates are widely expected to increase further in the coming years, but the timing of any rate hikes remains unclear particularly with the looming spectre of a possible no deal Brexit hanging over the UK.

The bank warned in November that the worst case no deal Brexit could plunge the UK into its worst recession since the Second World War, and knock 8% off GDP in a single year.

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