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BoE set to keep interest rates at 0.75 per cent amid Brexit uncertainty

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The Bank of England (BoE) is thought to keep interest rates at 0.75%, amid Brexit uncertainty is ruining the economy.

Industry data showed output in Britain’s dominant service sector virtually ground to a halt during January. This was at its lowest level for two-and-half years.

Figures suggest growth could flatline in the quarter one of 2019, after the Purchasing Manager’s Index (PMI) readings for construction and manufacturing sectors in January, economists have said.

The decision from the BoE is set to see the Monetary Policy Committee (MPC) vote unanimously to hold rates, Thursday at 12pm.

Interest rates is thought to hold until the Brexit situation shows clarity.

Howard Archer, chief economic adviser to the EY Item Club said, “The weakened set of January PMI’s leave little doubt that the Bank of England will remain firmly in ‘wait and see’ mode on monetary policy at February’s MPC meeting this week, and until after the Brexit situation becomes clearer.”

Chris Williamson, chief business economist at IHS Markit said, “There is a heightened risk of the economy stagnating or even contracting in the first quarter, especially if Brexit uncertainty intensifies in the lead-up to 29 March.”




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