BOE Maintains Benchmark Interest Rate at 0.75% in 9-0 Vote

The Bank of England decided to maintain the interest rate at 75 basis points, noting that the output gap has closed and the economy is expected to run hot from late 2019. The decision was unanimous, with concerns about global economic unevenness and Brexit as key challenges. Jamie Murray from Bloomberg discussed the implications, highlighting the need for potential rate hikes. The economic forecast does not yet account for increased spending announced by Philip Hammond, suggesting further economic heat if Brexit negotiations conclude with a deal.

What decision did the Bank of England make regarding the interest rate?

• They decreased it by 25 basis points.

• They eliminated the interest rate.

• They increased it by 25 basis points.

• They kept it unchanged at 75 basis points.

What is the main challenge to the Bank of England's monetary policy?

• The global oil prices

• The US-China trade war

• Brexit

• The rising inflation rate

How did the market react to the Bank of England's decision?

• The stock market crashed.

• The cable rate increased.

• UK bonds increased in value.

• The cable rate decreased.

What does Jamie Murray suggest about future interest rate hikes?

• They will be slower than expected.

• They will be faster than markets have priced in.

• They will remain the same.

• They will be eliminated.

What factor is not yet included in the Bank of England's forecasts?

• The impact of Brexit

• The global economic slowdown

• Philip Hammond's budget

• The US interest rate changes