Commenting on today's interest rates decision by the MPC, Seamus Nevin, Chief Economist at Make UK, the manufacturers’ organisation, said:
“The UK will leave the EU tomorrow but the real impact of Brexit won’t become clear until the end of the year. For now, however, faster growth in household spending, combined with slowing inflation and solid pay growth has left the MPC confident that the interest rate remains at the appropriate level.
“A combination of a steadily rising sterling value and, improved business confidence, could justify a cut in rates later in the year to boost domestic spending. But, at present, the MPC is justified in preferring to have more room to manoeuvre should it be needed over the next eleven months.”