Bank of England interest rate decision and inflation report

Hannelore
Foerster/Getty

• Bank of England set to leave interest rates unchanged
  on Thursday at the November meeting of its Monetary Policy
  Committee.
• That will mean the UK will remain with a base interest
  rate of 0.75%.
• Rates are widely expected to increase further in the
  coming years, but the next move will almost certainly not
  happen until next year.
• The decision will come at 12:00 in London (8.00 a.m.
  ET), and at 12.30, Governor Mark Carney will take
  questions.

The Bank of England will shortly announce its latest
decisions on the UK’s monetary policy, and is widely expected to
leave interest rates on hold for another month.

At 12.00 p.m. in London (8.00 a.m. ET) the bank will
announce its latest decisions, and its nine-member Monetary
Policy Committee is expected to vote unanimously to leave rates
on hold at 0.75%, but could telegraph the path for future policy
decisions, including when it might next increase its base rate of
interest. 

Any outcome other than no change from the meeting would be
a significant surprise to markets.

Rates are widely expected to increase further in the coming
years, but the timing of any rate hikes remains unclear, and the
next move in rates will almost certainly not happen until next
year. Any moves are also believed to be dependent on the progress
of Brexit.

Alongside the decision on Thursday, the bank will release
its quarterly Inflation Report, which provides
an update of its forecasts for overall economic
growth and inflation. Governor Mark Carney will also hold a press
conference following the announcement of the decision.

Britain faces an uncertain economic future as Brexit looms.
The British government remains adamant that it will strike
a deal, and says one is 95% complete, but the exact shape of that
deal isn’t entirely clear. 

Should Britain fall out of the EU without a deal, the Bank of
England would likely be forced into extraordinary measures —
similar to those taken after the initial Brexit vote — as a means
of protecting the UK from any negative shocked.

This post will be updated once the decision is
announced.