The monetary policy committee, led for the last time by Mark Carney, kept interest rates at 0.75 per cent and cut its GDP forecasts for each of the next three yearsBoris Johnson’s Brexit deal will harm the UK’s economic potential and drag down growth, the Bank of England has judged in Mark Carney’s final set of forecasts as governor. As the Bank surprised markets by leaving interest rates unchanged at 0.75 per cent, it warned that the economy’s speed limit would be lower under the government’s plan for a rapid free trade deal with the European Union, apparently putting paid to hopes of an automatic “Boris bounce”. Markets had been expecting an interest rate cut to 0.5 per cent this week but the monetary policy committee (MPC) vote was unchanged at 7-2 in favour of holding. Jonathan Haskel and Michael Saunders, both external members, remained the dissenters. Striking a slightly hawkish tone, the Bank said

Source: The Times January 30, 2020 12:22 UTC