MPC holds Bank Rate amid Brexit recession warning

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The Bank of England’s Monetary Policy Committee (MPC) has voted to maintain the Bank Rate at 0.75%.

The nine-member committee voted unanimously (9-0) to hold the rate.

In its inflation report, the MPC said there there was a 33% probability of negative growth by the start of next year, due to uncertainties around Brexit.

Frances Haque, Santander UK chief economist, said: “With the uncertainty over the outcome of Brexit still hanging in the air and the increased possibility of a no-deal Brexit, the decision to hold rates won’t be a surprise to the market.

“Although the economic data published for the second quarter of this year has been lacklustre, many of the fundamentals such as low unemployment and strong wage growth remain, yet the MPC clearly remains cautious in its approach.

“Until there’s more clarity on the final outcome of Brexit, it’s unlikely we’ll see a rate rise this year, with the market implying that a cut is more likely.”

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