BoE holds interest rates, signals possible future cuts

The Bank of England (BoE) has opted to leave UK interest rates at 0.75% in its latest rate decision meeting, but has surprised markets with two of its members voting to cut interest rates. The change in sentiment has been duly noted considering the BoE had hiked rates twice since Q4 2018 and adds weight to the idea that the central bank might cut interest rates in the near future. Having said that the UK's growth prospects had slowed materially in 2019, the BoE pointed towards a combination of weakening global growth and continued Brexit related uncertainty as the reasons for the more dovish sentiment at this month's meeting. Following the rate decision, sterling fell around half a per cent against the US dollar as markets priced in increased expectations of lower interest rates in future, which tends to spark outflows from a central bank's home currency.