The Bank of England kept its benchmark interest rate unchanged after lifting it to the highest since 2009 last month.
The Monetary Policy Committee, led by Governor Mark Carney, voted unanimously to hold the key rate at 0.75 percent, as expected by all 60 economists in a Bloomberg survey.
Policy makers said economic activity has been better than expected, pointing to growth of 0.5 percent in the third quarter instead of the August estimate of 0.4 percent, according to minutes of the meeting published Thursday.
They also noted that consumer spending and pay settlements appear to have been stronger than anticipated in their last forecasts.
The bank reiterated its view that “limited” and “gradual” rate increases will be needed over the next few years to return inflation to its 2 percent target. Investors see the next quarter-point increase arriving in May.
The committee also noted that downside risks to global growth had increased as trade tensions escalated and emerging markets became more volatile. It reiterated that Brexit was the biggest challenge to the outlook and that uncertainty about the U.K.’s future outside the European Union had risen since the last meeting.
Source : Bloomberg