BoE holds rates at 0.1%, higher inflation no barrier to further easing in the event of a no-deal Brexit, Pound Sterling exchange rates edge lower
The Bank of England decision was in line with expectations. The bank warned over potential disruption early in 2021 and indicated that it was ready to ease policy further if conditions deteriorate even if inflation rises. The comments suggest that a no-deal Brexit would likely result in further easing even if the pound Sterling rate slides.
The pound-to-dollar rate edged back to just below 1.3600 from 30-month highs at 1.3620 with the euro-to-pound rate at 0.9000 from 0.8985 lows ahead of the decision.