Market comment

Bank of England minutes rule out near-term rate cut

DAVY VIEW

Yesterday’s poor UK retail sales data were polluted by timing effects from ‘Black Friday’ sales. Therefore, the 0.6% decline in November, with annual growth slowing to 1%, is misleading. The Bank of England’s decision to keep rates on hold was expected, with the minutes indicating that the Monetary Policy Committee (MPC) is in wait-and-see mode to gauge how reduced Brexit uncertainty will help business and consumer sentiment. So no rate cut is likely in the immediate future.

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Dec 20 2019, 07:10 GMT

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