The Bank of England has left interest rates on hold and kept its bond-buying programme unchanged. It has increased growth forecast for the next three years and said it will continue to tolerate higher inflation.
- Bank holds rate at 0.25%
- Government bond buying target remains at £435bn plus £10bn of corporate bonds
- Sterling weakens against dollar as markets rule out chance of near-term rate rise
By Gavin Jackson and Elaine Moore
The Bank of England has increased it forecasts for growth and inflation for this year and next, part of its quarterly update on the economy. It also held interest rates.
Meanwhile the UK government has lost its case in the High Court over whether it can trigger Article 50 without a parliamentary vote, and will now file an appeal to the Supreme Court.
The BoE now expects inflation to hit 2.7% next year, and stay that high in 2018
The Bank unanimously voted to hold hold interest rates
The UK government has lost its case on triggering Article 50 in the High Court, and will appeal
UK services PMI rises to 54.5 from 52.6 – fastest pace of growth since January
After a weekend of political ructions in both main parties, focus in the UK today has switched back to the economy and the business impact of last week’s vote. UK stocks are down, the pound is at a new 30-year low, while 10-year Gilt yields have broken below 1% for the first time.
But we have also seen a number of fresh developments inside the Labour party, where an attempt is underway to unseat leader Jeremy Corbyn.
Markets are rattled – with the FTSE 100 down 2.6 per cent, the FTSE 250 off 7.0 per cent, and the pound has weakened more than 3 per cent against the dollar to fall below $1.32 and set a new post-1980s low in today’s trading.
George Osborne, speaking for the first time since Thursday’s vote says government ‘must deliver’ on the result
Boris Johnson, who hopes to replace Mr Cameron, has backed BoE governor Mark Carney, and vowed to keep UK in the single market
David Cameron has given his first statement to the Commons since the vote to leave the EU. He ruled out holding a second referendum and made it clear any decisions on Britain’s future relationship with the Union would be an issue for his successor. Boris Johnson was not there.
The bloodletting in the Labour party has continued, with dozens of shadow cabinet members resigning
You can catch up on what happened yesterday here.
The chart below shows the 2010 general election result for every seat in Great Britain with the colour showing the party that won . Dots that are nearer the apex of the triangle had a higher vote share for Labour in 2010, those closer to the bottom left; for the conservatives while the bottom right corner shows the share for all other parties.
You can already see in this chart where the battlegrounds lie as the colours meet where one party is getting about 40 per cent of the vote. Read more
Nearly half a million people on Monday took advantage of their last chance to get on the electoral register before the general election, setting a new daily record.
What do betting markets make of the election so far? Well, if anything, they seem as confused as everyone else. Currently punters on Betfair are predicting that the Conservatives will win the most seats but that Labour will form a minority government and that David Cameron will be the next prime minister. Read more