Bank of England set to hold rates as it seeks Brexit clarityhttps://indianexpress.com/article/world/bank-of-england-set-to-hold-rates-as-it-seeks-brexit-clarity-5573335/

Bank of England set to hold rates as it seeks Brexit clarity

On Thursday, the bank is expected to announce that its nine-member rate-setting body has kept its main interest rate unchanged at 0.75 percent.

Bank of England set to hold rates as it seeks Brexit clarity
Demonstrators for and against Britain’s departure from the European Union gathered outside Parliament (Andrew Testa/The New York Times/File)

With 50 days to go until Britain leaves the European Union, the Bank of England is awaiting clarity over Brexit before deciding what to do next on interest rates.

On Thursday, the bank is expected to announce that its nine-member rate-setting body has kept its main interest rate unchanged at 0.75 percent.

Whether the next move is up or down hinges on Brexit.

Should the country crash out of the bloc with no deal on future relations, many economists think the bank could slash its main rate to zero as it deals with the economic fallout.

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By contrast, a smooth Brexit could see the bank raise interest rates as it responds to rising wages.

The views of Governor Mark Carney will be of interest after the rate decision.