Bank of England leaves interest rates at 0.5%

The Bank of England has kept interest rates on hold.

The Bank of England has kept interest rates on hold. - Credit: PA

The Bank of England warned a Brexit vote could hurt the economy and “push down on demand” as it kept the cost of borrowing on hold once more.

Members of the Bank’s Monetary Policy Committee (MPC) said the economy may face “an extended period of uncertainty”, as it considered the “likely implication for monetary policy” if Britain left the European Union.

The comments came as all nine policymakers on the MPC voted to leave rates at 0.5% - where they have remained since March 2009 - and keep its quantitative easing programme on hold at £375 billion.

Minutes of the meeting showed the MPC also stood by its stance that the next move for rates would be a rise rather than a cut, stating “it is more likely than not that the Bank rate will need to increase over the forecast period”.

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