Markus Kuger, Chief Economist at Dun & Bradstreet says: “Today’s 7-2 decision from the Monetary Policy Committee is the first split vote since mid-2018 and shows that some rate setters prefer lower interest rates in order to support the slowing British economy. However, with the Brexit deadline having been postponed again and a General Election being called, the majority of MPC members are favouring a ‘wait and see’ approach. This approach is timely, as additional fiscal stimulus seems likely regardless the outcome of the election.
“That said, Dun & Bradstreet expects a 25 basis points cut in 2020 amidst challenging global trading conditions and subdued inflationary pressures. In addition, uncertainty about the medium- to long-term nature of the UK-EU relations will weigh on corporate investment and also adversely impact on households’ willingness to spend.”