Prime Minister Theresa May is running down the clock before putting her withdrawal agreement to a vote in Parliament. If lawmakers reject the deal, the risk of leaving the EU without a transition period rises.
A disorderly Brexit would put the BOE in crisis-fighting mode -- the pound would fall, fanning inflation, while new trade barriers would put the brakes on growth. The MPC said that the current monetary policy stance is “appropriate” for now, though it expects greater-than-usual short-term volatility in U.K. data.
Investors are no longer fully pricing in another rate increase in 2019. They see about a 60 percent chance of a quarter-point hike by the end of next year.
In a separate report from regional agents, the BOE said that retail sales appear to be weakening, investment is being put on hold because of Brexit and recruitment difficulties are getting worse.
This article provided by Bloomberg News.