Rates on hold amid Brexit uncertainty

INTEREST rates have been held at 0.75pc by the Bank of England as it waits for a Brexit decision.

Uncertainty over our departure from the European Union is harming the economy, the Bank said, with businesses putting off investment.

But it added that consumer spending is performing better and the jobs market is strong.

The employment rate hit a record high of 76.1pc in the three months to January, while unemployment is at a 44-year low at 3.9pc. The Bank’s ratesetting monetary policy committee (MPC) – chaired by Governor Mark Carney – unanimously voted to keep rates where they are.

In a statement, it said: ‘Brexit uncertainties continue to weigh on confidence and short-term economic activity, notably business investment.

‘Employment growth has been strong, although survey indicators suggest the outlook has softened. Most indicators of consumer spending are consistent with ongoing modest growth.’

The MPC added it is impossible to say if rates will go up or down in the event of a No Deal Brexit.