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Bank of England keeps interest rates steady at 0.75%

The main interest rates have been kept steady at a level of 0.75% by the Bank of England with the committee which sets these rates voting by a majority of 7-2 favoring to keep the levels which are there currently.

The bank has maintained their dovish stance which they had been exhibiting post their previous meeting as it commented through an accompanying statement that if the growth fails to stabilize globally or the uncertainties over Brexit remain, the policies might need reinforcement with respect to recovery of the U.K economy.

It has forecasted that the GDP for the U.K will grow in the last quarter of the year will be cut to 0.1% from the forecast which was there in November at 0.2% as it reflects the economic conditions weakening as shown in the data recently.

The bank has said that the household consumption grew steadily however the investment of business and the orders of export stayed weak with the financial markets being sensitive to the policy developments domestically.

The committee of the Bank had also voted in unison for maintaining its scheme of asset purchase which is currently holding government debt of 435 billion pounds and corporate bonds worth 10 billion pounds

About the trade war between U.S. and China, the Bank said that the de-escalation of the war has given further support to the outlook.

The Governor of the Bank, Mark Carney is expected to step down come the end of the month of January post his 7 year term at the top with the new Prime Minister Boris Johnson expected to name a successor soon.

The bank is still grappling with the uncertainty which surrounds Brexit.

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