BoE's Broadbent undecided on whether to apply to succeed Carney

GBP  USD Price Chart- British Pound vs US Dollar 240minute Sterling Rate

No rate changes from Bank of England

GBP price up on hawkish Bank of England The Bank of England kept all its monetary policy settings unchanged Thursday, with Bank Rate left at 0.75% and its buying of United Kingdom government and corporate bonds at their previous levels.

"Past comments by BoE Governor Mark Carney have suggested that he thinks that it is most likely that the economy would need stimulus if there is a no deal Brexit, thereby indicating that an interest rate cut would be more likely than a hike", Archer said.

During the first quarter of 2019 the economy probably grew by 0.5 per cent due to businesses building up stocks ahead of Brexit, the BoE said - a faster rate than the 0.2 per cent growth it forecast in February.

"If a Brexit resolution is some form of arrangement with some smooth resolution to it, it will require rate increases, and more frequent rate increases than the market now expects".

The Bank held rates at 0.75 per cent, but Mr Carney stressed that financial market expectations that a hike will not come until the end of 2021 would not be enough to keep inflation to the 2 per cent target.

The Bank's latest quarterly inflation report revealed it expects a first-quarter growth spurt thanks to Brexit stockpiling, but cautioned the boost will prove to be temporary as uncertainty reigns.

In a news conference, Mr Carney said: "If something broadly like this forecast comes to pass.it will require interest rate increases over that period and it will require more, and more frequent interest rate increases, than the market now expects".

Howard Archer, chief economic adviser to the EY ITEM Club, an economic forecast group in London, told Xinhua: "Clearly Brexit has weighed on the decision to keep interest rates at 0.75 percent".

The Bank raised its forecasts for GDP growth while warning of the possible impact of Brexit.

Mr Carney stressed that while the global economic outlook has improved, "domestic tensions remain".

"Brexit-related uncertainty has led to a reduction in business investment and an increase in stockbuilding", the institution said in its outlook document.

The growth predictions for 2020 and 2021 also went up, though that was due more to looser global financial conditions and the lower yield curve in the U.K. Unemployment, already at the lowest in four decades, will fall further, although wage gains appear to be levelling off, the bank said.

The BoE has long warned of the detrimental effects of Brexit uncertainty.

The Bank's rates announcement comes after the Treasury announced last week it had kicked off the hunt to find a replacement for Bank Governor Mark Carney.

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