Written by Thy
Edited by HV
The Bank of England decided to keep the interest rates on hold at 0.5% in their meeting on Thursday.
The rise in inflation data was not strong enough to increase the interest rates sooner than expected as there has been a slowdown in services, manufacturing and construction sectors since the beginning of 2016.
According to This Is Money, economists now predict that the interest rates will remain at historic low for another year. The Bank of England also indicated that the next move for the rates will be likely a hike while the market expects a cut.
Amid Brexit fear, the British central bank issued their official warning on the risk of the UK’s departure from the EU. The BOE’s Monetary Policy Committee stated that Brexit would hit the UK financial industry in terms of share sales, private-equity deals and commercial real estate transactions.