The Bank of England's Monetary Policy Committee (MPC) voted to maintain the Bank Rate at 0.75 per cent. The MPC also voted to maintain the stock of UK non-financial corporate bonds stock at £10 billion and the stock of UK government bond purchases at £435 billion. 

The Bank's Monetary Policy Report notes that UK economic growth has been broadly in line with projections. Global growth is showing signs of stabilising and financial conditions remain supportive. The partial de-escalation of the US-China trade dispute is supportive to conditions although trade tensions remain elevated. UK GDP was up 0.3 per cent in Q3 and expected to be marginally faster in Q4. Household consumption continues to grow, but business investment and export are areas of weakness. There has been signs of labour market loosening with slowing employment growth, lower vacancies, and easing pay growth. Unemployment has remained stable and the employment rate is around a record high. 

Inflation in the UK remained at 1.5 per cent in November with core CPI inflation at 1.7 per cent, broadly in line with expectations. Inflation should fall in first half of 2020 from temporary effects of declines in regulated energy and water prices. 

The Bank notes that monetary policy could be eased or tightened depending on changes to the economic outlook.  If global economic growth slows or Brexit uncertainty persists, the Bank may be required to ease policy to reinforce economic recovery.  If the economy recovers in line with the Bank's latest projections, a gradual and limited tightening of policy will be needed to sustain inflation at the target.

Bank of England: Monetary Policy Report