The Bank of England’s Monetary Policy Committee has voted unanimously to maintain Bank Rate at 0.75%. This is continued good news for borrowers, particularly mortgage holders, who will be relieved not to see their payments increase.
The Bank of England is expected to keep interest rates on hold until a clear outcome on Brexit has been determined. The bank noted that “the appropriate path of monetary policy will depend on the balance of the effects of Brexit on demand, supply and the exchange rate. In all circumstances, the committee will set monetary policy appropriately to achieve the 2% inflation target”.
The uncertainty caused by the multiple Brexit scenarios that are still in play has pulled down the rate of economic growth to below trend. Subdued growth is likely to continue until businesses are provided with clarity on Brexit.