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Bank of England leaves rates on hold amid Brexit uncertainty

Friday,   14-Sep-2018   10:00 AM (IST)

The Bank of England has left interest rates on hold at 0.75% as expected but flagged "greater uncertainty" around the Brexit negotiations.The Bank's Monetary Policy Committee (MPC) voted 9-0 to leave rates unchanged.A quarter of a percentage point rise last month took rates to the highest level since March 2009.The MPC said in the minutes of its September meeting there were mounting fears about the UK leaving with the EU without a deal agreed."Since the committee's previous meeting, there had been indications, most prominently in financial markets, of greater uncertainty about future developments in the withdrawal process," it said.The Bank's regional staff reported that businesses were cracking down on costs and holding back on investment ahead of Brexit.However, it raised the forecast for UK economic growth in the third quarter from 0.4% to 0.5%, partly due to stronger consumer spending over the unusually warm summer.The MPC flagged heightened risks to global growth following trade tensions between the US and China and turbulence in some emerging markets.