Interest rates on hold but rises could be on the horizon

Interest rates are on hold
Interest rates are on hold
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The Bank of England has kept interest rates on hold at 0.75 per cent after August’s hike, but it confirmed further increases are likely to be needed to rein in inflation.

Members of the Bank’s nine-strong Monetary Policy Committee voted unanimously to keep rates unchanged, having backed a quarter-point rise last month - only the second since the financial crisis.

The Bank said economic growth is on course to beat expectations for the third quarter thanks to a bumper July, but it cautioned over “greater uncertainty” on Brexit.

In minutes of the latest rates meeting, the Bank revealed its internal estimates show economic growth is set to pick up pace to around 0.5 per cent in the third quarter, from 0.4 per cent between April and June.

It had previously predicted growth would remain steady at 0.4 per cent in the third quarter. However, it said anxiety over Brexit is building.