"Despite a small after July's sharp increase, the underlying pattern in the retail sector remains one of solid growth. Overall the figures do not suggest any major fall in post-referendum consumer confidence".
- Mel Richard, ONS
The Bank of England kept its key interest rates unchanged at its September meeting despite the post-Brexit pressure, official data revealed on Thursday. The bank's policymakers voted anonymously to maintain the central bank's benchmark interest rate at its new, historically low, level of 0.25%. Furthermore, they voted 9-0 to leave the Central bank's bond buying program target level at 435 billion pounds as well as to stick to its new plan to buy up to buy 10 billion pounds of high-grade corporate bonds. Nevertheless, the BoE pointed to persistent risks of Britain's economic slowdown. Also, the Central bank revised up its Q3 GDP growth forecast to 0.3% from the previous projection of 0.1% made in August. All figures came in line with analysts' expectations. Other data released on the same day showed the country's retail sales decreased less than expected despite the Brexit vote. According to the Office for National Statistics, Britain's retail sales dropped 0.2% month-over-month in August, following the preceding month's upwardly revised gain of 1.9% and surpassing the 0.4% fall forecast. On an annual basis, sales volumes rose 6.2% last month, compared to July's 5.4% rise. Excluding fuel, retail sales climbed 5.9% year-over-year in August, posting the largest increase since November 2014.
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