The Bank of England’s Monetary Policy Committee has released the voting decisions and Minutes of the meeting which ended on 02 November 2016.
The Minutes reveal that the Committee voted 9-0 to:
- 1) maintain Bank Rate at 0.25% per annum;
- 2) continue with the programme of sterling non-financial investment-grade corporate bonds purchases totalling up to £10 billion, financed by the issuance of central bank reserves; and
- 3) continue with the programme of £60 billion of UK government bond purchases to take the total stock of these purchases to £435 billion, financed by the issuance of central bank reserves.
To see a copy of the Minutes, please click on the following link:
The Bank of England also published its latest quarterly Inflation Report setting out the MPC’s latest projections for output, unemployment and inflation, conditioned on average market yields.
“Output growth is expected to be stronger in the near term but weaker than previously anticipated in the latter part of the forecast period. In part that reflects the impact of lower real income growth on household spending. It also reflects uncertainty over future trading arrangements, and the risk that UK-based firms’ access to EU markets could be materially reduced, which could restrain business activity and supply growth over a protracted period. The unemployment rate is projected to rise to around 51⁄2% by the middle of 2018 and to stay at around that level throughout 2019.
Largely as a result of the depreciation of sterling, CPI inflation is expected to be higher throughout the three-year forecast period than in the Committee’s August projections. In the central projection, Inflation rises from its current level of 1% to around 23⁄4% in 2018, before falling back gradually over 2019 to reach 21⁄2% in three years’ time. Inflation is judged likely to return to close to the target over the following year”.
To see a copy of the Inflation Report, please click on the following link:
The meeting concluded before the High Court ruled this morning that the UK Parliament must vote on whether the UK can start the process of leaving the UK. Interesting times ahead!