So, the Bank of England didn’t do it: against market expectations that there would be a cut, the base rate has been kept at 0.5 per cent, where it’s been since March 2009. The pound shot up by 1.5¢ against the dollar on the news.
— Bank of England (@bankofengland) July 14, 2016
The Bank is keeping its powder dry and today’s hold doesn’t mean there isn’t a cut coming: The Monetary Policy Committee is meeting again in three weeks’ time when it will have new forecasts for the economy and more official data on the impact of the referendum. ‘Most members of the Committee expect monetary policy to be loosened in August,’ the minutes of this month’s meeting note. So much for George Osborne’s pre-referendum claim that a vote to Leave would see the cost of borrowing jump.