Despite predictions that interest rates would increase in May, the Bank of England has held rates at 0.5%, after they also cut growth forecasts for 2018.
The Monetary Policy Committee (MPC) voted 7 to 2 in favour of keeping rates at 0.5% after growth slowed to just 0.1% in the first quarter of 2018. This prompted the Bank of England to also drop its growth predictions from 1.8% to 1.4% for 2018.
The Pound Falls
As the news broke from the Bank, the value of Sterling dropped, and was trading 0.2% lower against the US dollar, and 0.7% against the Euro. Mark Carney, Governor of the Bank of England said:
“While the storms of February and March have given way to sunnier skies, the economic outlook for the UK remains clouded by Brexit uncertainties.”
For more on the bank’s decision to hold interest rates at 0.5%, head over to the BBC News website.