In a widely expected decision, the Bank of England's Monetary Policy Committee held the policy rate unchanged at 0.75% with a unanimous vote. The asset purchase facility remained steady at €435 billion as well.

With the initial market reaction, the British pound weakened modestly and the GBP/USD pair was last seen trading at 1.2450, losing 0.15% on the day. Below are some key takeaways from the monetary policy statement, per Reuters.

"Uk GDP growth of +0.2% in Q3 2019 (August Q3 forecast +0.3%)."

"Staff forecast inflation will stay under 2% target for rest of 2019, due largely to base effects from energy price caps."

"Outlook for global growth has weakened due to intensified trade war betweeen US and China, having material negative impact on global investment."

"Underlying UK growth has slowed but remains slightly positive."

BOE Interest Rate Decision is announced by the Bank of England. If the BoE is hawkish about the inflationary outlook of the economy and raises the interest rates it is positive, or bullish, for the GBP. Likewise, if the BoE has a dovish view on the UK economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.

Source : FXstreet