Interest rates held but growth outlook raised

At the moment, the Bank said it is expecting just one rise in interest rates by 2021.

The announcement came as the Bank also revealed that it is now projecting growth of 1.5 per cent for the UK economy this year, up from February’s forecast of 1.2 per cent.

Uncertainty over Brexit was cited as one reason why the Bank has been reluctant to raise interest rates.

Today is the Bank’s first interest rate policy meeting since a six-month postponement of Brexit was granted last month.

The new deadline is 31 October.

The Bank warned that “the economic outlook will continue to depend significantly on the nature and timing of EU withdrawal, in particular the new trading arrangements between the European Union and the United Kingdom, whether the transition to them is abrupt or smooth, and how households, businesses and financial markets respond.”