Bank of England keeps interest rates on hold


Business, Economy

Britain's economy performing stronger than many forecasters predicted in aftermath of Brexit vote.

(Photo: Representational Image/AFP)

London: The Bank of England has decided to keep its main interest rate at a record low of 0.25 percent as the resilience of the country's economy continues to grow strongly despite last year's vote to leave the European Union.

Britain's economy has been performing stronger than many forecasters predicted in the aftermath of June's Brexit vote. In the fourth quarter of 2016, it expanded at a quarterly rate of 0.6 percent.

Worries over the vote's impact had prompted the bank to cut rates for the first time in more than seven years and expand its economic stimulus program in August.

The pound has lost a fifth of its value since the vote, threatening to increase inflation.