Here are the highlights of monetary policy summary:
- The Bank of England's monetary policy committee has set its policy to meet the inflation target of 2%, in a way that will help sustain growth and employment.
- Unanimous vote was taken to keep interest rates at 0.50%.
- Unanimous vote was also taken to keep the asset purchase program at 435 billion pounds.
- Consumption growth remains sluggish in the near term before it rises in line with household income.
- Despite the impact of uncertainty about Brexit, Business investments are expected to continue to grow at a moderate pace, supported by strong global demand, high profitability, low capital cost and limited spare capacity.
- Unemployment rates are expected to remain low during the 3-year forecast period. And that domestic inflationary pressures will gradually increase.
- Inflation is expected to fall from current levels to return to the target at 2% at the end of the 3-year forecast period.
- The indicators indicate that GDP growth in the last quarter will be softer than the growth achieved during the third quarter.
- The consumer price index exceeded the target of 2% due to higher import prices resulting from the depreciation of the pound sterling.
- The MPC expects inflation to return to the target in the medium-term.
- Developments on Brexit continue to have the most impact on economic outlook as well as the source of uncertainty.
