Bank of England holds rates as it says excess supply has reemerged

The Bank of England voted unanimously to hold interest rates at 0.75% and maintain its government purchases at £435 billion. The Bank of England said underlying growth has slowed, but remains slightly positive, and that a degree of excess supply appears to have opened up within companies. "Entrenched Brexit uncertainties and slower global growth have led to the re-emergence of a margin of excess supply. Increased uncertainty about the nature of EU withdrawal means that the economy could follow a wide range of paths over coming years. The appropriate response of monetary policy will depend on the balance of the effects of Brexit on demand, supply and the sterling exchange rate," the central bank said.