Interest rates remain at 0.5%
The Bank of England (BoE) decided yesterday to keep interest rates unchanged, the BoE unanimously agreed to maintain rates at 0.5% and leave the asset purchase programme at £375bn, this was what analysts were expecting.
The decision to keep rates as they are comes amid concerns about weak wage growth, low inflation and a global economic slowdown, uncertainty surrounding the referendum set for 23rd June on Britain’s European Union membership was also taken into account.
The BoE’s Monetary Policy Committee reportedly said in the minutes of the March meeting. “There appears to be increased uncertainty surrounding the forthcoming referendum on UK membership of the European Union.
“That uncertainty is likely to have been a significant driver of the decline in sterling. It may also delay some spending decisions and depress growth of aggregate demand in the near term.”