This archive report was first published on 1 August 2019.
Published on August 1, 2019, the Bank of England warned that British economic data had become 'volatile' as the Brexit deadline approached, with economic growth likely to have flattened in recent months.
Despite this, the bank decided to keep its benchmark interest rate at 0.75 percent, and the British pound, which had slid before the announcement, ticked up slightly before resuming its recent decline.
The central bank attributed the economic woes to 'intensifying Brexit-related uncertainties on business investment and weaker global growth.'
The likelihood of a no-deal Brexit has caused distress in business circles, with the pound falling below $1.21, a level not seen in two and a half years.
The bank acknowledged that the uncertainty over Brexit had made economic predictions difficult, stating that 'increased uncertainty about the nature of E.U. withdrawal means that the economy could follow a wide range of paths over coming years.'
However, the bank did not rule out an increase in interest rates 'at a gradual pace and limited extent' if Brexit turned out to be smooth and the global economy recovered.
