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BRITAIN-ECONOMY-FOREX-RATE-BOE
BoE freezes rate, cites ‘greater’ Brexit uncertainty
LONDON, Sept 13, 2018 (BSS/AFP) – The Bank of England has voted to leave its
main interest rate at 0.75 percent, it announced Thursday, noting “greater
uncertainty” surrounding Brexit.
The BoE’s nine policymakers, including governor Mark Carney who this week
agreed to prolong his stay at the helm post Britain’s EU departure next year,
all voted at a regular policy meeting to keep the rate on hold.
The Monetary Policy Committee had in August voted unanimously to raise the
rate by a quarter-point to help tame Brexit-fuelled UK inflation.
“Since the Committee’s previous meeting, there have been indications, most
prominently in financial markets, of greater uncertainty about future
developments in the withdrawal process,” said minutes of the latest meeting.
British finance minister Philip Hammond on Tuesday announced that Carney
would remain BoE chief until January 2020 to steer the UK economy through
possibly “quite a turbulent period” post-Brexit.
Britain is set to leave the European Union in March, while there are
concerns about possible economic chaos for the nation should it depart
without a divorce deal.
BSS/AFP/SR/1710 HRS