Bank of England holds rates as it awaits Brexit developments

Posted on Thursday, September 13th, 2018 By The Associated Press

In this Thursday, Aug. 2, 2018 file photo, Bank of England Governor, Mark Carney, speaks during a media conference to present the central bank's quarterly Inflation Report, in London. Carney has agreed to extend his period as governor by six months until January 2020 to help out with Britain's exit from the European Union, it was reported on Tuesday, Sept. 11, 2018. The announcement from the government and the bank was expected after Carney told lawmakers last week that he was "willing" to extend his tenure beyond his scheduled June 2019 departure. (Daniel Leal-Olivas/Pool via AP, File)

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.

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