LONDON (AP) — The Bank of England has kept its main interest rate on hold at 0.75 percent as policymakers await developments in Britain’s looming exit from the European Union.
In a statement Thursday, the bank said its nine-member rate-setting panel voted unanimously to keep borrowing rates unchanged, a month after sanctioning a quarter-point increase.
The Monetary Policy Committee suggested that an “ongoing tightening” of monetary policy would be necessary in the future to return inflation “sustainably” to the bank’s 2 percent target. It added, however, that Britain’s economic outlook “could be influenced significantly by the response of households, businesses and financial markets to developments related to the process of EU withdrawal.”
Britain is due to leave the EU in March but there’s uncertainty about the prospects of a trade with the EU.