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Bank of England set to keep rates unchanged before Brexit deadline

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The Monetary Policy Committee (MPC) who are the policymakers at the Bank of England (BoE) are set to keep interest rates on hold at 0.75% this week.

The MPC are to give their decision officially at noon on Thursday, they are also set to provide positive news as the UK economy figures show gross domestic product (GDP) grew by 0.3% month-on-month in July.

Howard Archer, chief economic adviser to the EY Item Club said, “We expect interest rates to be kept at 0.75% with the MPC firmly in ‘wait and see’ mode.

“Current heightened domestic UK political uncertainties reinforce the case for the Bank of England maintaining a watching brief.”

Inflation has moved up slightly from 2% in June to 2.1% in July.

George Brown, at Investec Economics, said the BoE will have “plenty of domestic political developments to chew over.”

Adding, “It now seems a question of not if but when a snap general election will be held, with both sides of the House of Commons indicating a desire to go back to the electorate.

“Though the MPC will steer well clear of commenting on such sensitive matters, it will need to grapple with the implications of a possible change of government and with it a shift in Brexit policy.”




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