Bank votes 6-2 to hold interest rates
Bank downgrades UK growth forecast to 1.7%
Bosses' fall in pay 'limited and late'
Next store sales fall but online shopping up
"It is evident that uncertainties about the eventual relationship are weighing on the decisions of some business. We see it directly in the macro-economic numbers, investment has been weaker than we otherwise would have expected."
Simon Jack
BBC Business Editor
The big squeeze on incomes will get tighter from here and will last longer than previously thought.
At the moment prices are rising 2.6% while wages are rising just 2%. That gap is expected to widen later this year.
Inflation is expected to peak at around 3% in October as the surge in import prices caused by the post-Brexit referendum drop in the pound continues to feed through to shop prices.
When prices rise faster than wages, we get poorer on average every day.
This explains why the Bank cut its forecast for economic growth for this year and next.
Mark Carney says the MPC's projections "continue to be conditioned on a smooth transition to an average of possible outcomes for the UK's post Brexit trading relationships.
"In the MPC forecast, uncertainty about the eventual shape of the UK's economic relationship with the EU weighs on the decisions of businesses and households and pulls down both demand and supply."
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Mark Carney: "The economy can be expected to pick up from its current period of sluggishness."
Mark Carney says inflation is set to peak at about 3% in October.
GDP growth remains sluggish in the near term, says Bank of England governor Mark Carney.
Sterling fell against the dollar and the euro following the Bank of England interest rate news. The pound was 0.5% down at $1.31 and fell 0.4% to 1.11 euros.
Image source, Getty ImagesQuote Message“It’s been a year since the Bank’s decision to lower rates to this record level, and during that time, despite uncertainty, the mortgage market has remained buoyant, quickly adapting to the challenges of Brexit and the UK general election result. However, these historic lows won’t last forever, particularly as inflation starts to creep upwards. A base rate rise this year, whilst not a certainty, is possible. Consumers should take the opportunity to get in touch with their adviser now, so that they can review their existing mortgage arrangements. Time is of the essence to secure a new deal, which could potentially save them thousands of pounds, before interest rates inevitably rise again.”
Jeremy Duncombe, Director, Legal & General Mortgage Club
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Quote Message“It was widely expected that the Bank of England would keep interest rates at their current level for the time being given uncertainty surrounding the UK economy. While the latest inflation figures showed a small dip to 2.6% from May’s high of 2.9%, longer term upwards trends remain a concern for the Monetary Policy Committee and further price pressure will prompt a rate rise."
Nick Dixon, Investment director at Aegon
The benchmark London index of blue-chip stocks is trading 0.43% higher after the Bank of England's decision to leave interest rates on hold.
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Michael Saunders and Ian McCafferty were the MPC pair who wanted to hike rates.
Bank chief economist Andy Haldane voted for no change, despite speculation he may have been poised to vote for a rate rise.
Members of the MPC also voted in favour of extending a credit facility to British banks from £100bn to £115bn.
The so-called Term Funding Scheme (TFS) runs until February 2018 and has already lent £78bn to banks at close to the bank’s base rate of 0.25%.
The TFS is backed by the Treasury.
The Bank says the economy will remain "sluggish" as it cut growth forecasts from 1.9% to 1.7% in 2017.
Bank of England keeps benchmark interest rate at record low of 0.25%.
The vote was 6-2 for no change.
Australia's biggest mortgage lender has been accused of massive breaches of anti-money laundering laws.
The country's financial intelligence agency launched proceedings on Thursday against Commonwealth Bank for 53,700 alleged breaches.
The proceedings relate to the bank's intelligent deposit machines (IDMs), which were allegedly used by criminal syndicates to launder money.
The bank could face huge financial penalties over the breaches.
Britain's economy is set for "steady but sluggish" growth over the coming months according to a closely watched survey.
The IHS Markit/CIPS services Purchasing Managers' Index rose to 53.8 in July from June's four month low of 53.4.
Anything above 50 shows expansion.
The service sector figures indicate that Britain's economy is struggling to gain momentum after its slowest start to the year since 2012.
Food for thought for the Bank of England's Monetary Policy Committee which will announce whether it will be keeping interest rates on hold shortly.
Image source, UniqloA fresh new shirt delivered at the push of a button is now on offer for travellers in the US.
Japanese fashion brand Uniqlo has installed a vending machine dispensing clothing at Oakland Airport in California.
Nine other machines will pop up at airports and malls at sites including Los Angeles, Houston and New York in the coming months.
They will stock men and women's shirts and lightweight jackets.
Uniqlo USA chief executive Hiroshi Taki said the technology brought "convenience to travellers looking for a warm jacket without the bulk or a versatile undershirt".