Bank of England sets interest rates as Brexit looms

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While Brexiteers get a special place in Hell, economics journalists must settle for a special place at the Bank of England today, as the central bank sets interest rates and releases its latest economic forecasts.

Yes, it’s the final Super Thursday (as they’ve known in the City) before Brexit day. Investors, business leaders, consumers and politicians should all pay attention to what governor Mark Carneyhas to say about the risks of a no-deal Brexit, and the state of the UK and global economies.

BoE policymakers are expected to leave UK interest rates alone, at 0.75%. With Brexit uncertainty at new heights, this isn’t the moment to tighten monetary policy -- especially as inflation has dropped back to just 2.1%, close to the official target.

The Bank’s economists may also cut their growth and inflation forecasts, given weakness in the global economy since their last meeting in November. So it should be a fun-packed press conference at lunchtime, when Carney takes questions from the media. Will he take the opportunity to issue any fresh Brexit warnings?

Fiona Cincotta of City Index says:

With Brexit clouding vision the central bank has their hands tied as far as policy is concerned. We expect further warnings over a no deal Brexit and the one hike a year mantra until Brexit uncertainty has cleared.