Bank of England keeps UK interest rates on hold

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The Bank of England has left interest rates on hold at 0.75% as expected after last month’s increase.

The Bank’s Monetary Policy Committee (MPC) voted 9-0 to leave rates unchanged.

Most analysts do not predict a further rate rise until after Britain leaves the European Union in March 2019.

August’s increase of a quarter of a percentage point, from 0.5% to 0.75%, took the main rate to its highest level since March 2009.

The MPC said there had been indications of “greater uncertainty” in the process of withdrawing from the EU since its last meeting.

The Bank’s regional staff reported that businesses were cracking down on costs and holding back on investment ahead of Brexit, which is due at the end of March.

However, the Bank has raised its forecast for UK economic growth in the third quarter from 0.4% to 0.5%, partly due to stronger consumer spending over the unusually warm summer.

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