London — The Bank of England (BoE) said the uncertainty around Britain’s divorce from the EU was intensifying as it kept interest rates unchanged. The bank’s monetary policy committee, led by Governor Mark Carney, voted 9-0 to hold the benchmark at 0.75%. All but one of the 61 economists in a Bloomberg survey correctly predicted Thursday’s decision. “The broader economic outlook will continue to depend significantly on the nature of EU withdrawal,” the minutes of the meeting said. “The monetary policy response to Brexit, whatever form it takes, will not be automatic and could be in either direction.” The pound was little changed at $1.2610 as of 12.03pm in London. The BOE is also grappling with how to exit years of ultra-loose policy alongside the rest of the world’s biggest central banks. On Wednesday, the Federal Reserve lifted borrowing costs while cutting the outlook for more hikes in 2019. The Bank of Japan kept its policy unchanged on Thursday. Sweden raised its benchmark for ...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now