Brexit Uncertainty Means Interest Rates Held As Expected

Published / Last Updated on 21/03/2019

As there is still uncertainty regarding Brexit, the Bank of England has again kept interest rates on hold.

A vote to keep rates at 0.75% pa was agreed by the members of the Bank’s Monetary Policy Committee (MPC), as the outlook for the economy is going to rely on what happens and when with Brexit.

The Bank had commented that business is feeling the pressure with the uncertainty of Brexit and information suggests that normal levels of corporate investment may be 6-14% lower than if a Brexit deal had been made.

The Bank has also seen evidence of stockpiling, even though there are signs that imports have risen, which shows goods are still coming in from overseas.

A special survey compiled by Bank of England’s agents suggest that 80% of firms are ready if there is a No Deal Brexit, up from January which was only 50%.

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