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Bank of England holds interest rates in the face of Brexit uncertainty

BOE policy makers have changed their forecast for quarterly economic growth from 0.3 percent to 0.2 percent in the last three months of the year. They added that the outlook for the first quarter of 2019 is likely to be similar.

"Brexit's uncertainties have increased significantly since the last committee meeting," MPC members said in a December meeting summary.

"These uncertainties are cradles in the financial markets."

The BOE also reiterated its view that post-Brexit benchmark interest rates could move in both directions, depending on developments.

Still 99 days before Britain leaves the EU On 29 March, deep divisions in parliament have increased the chances that the world's fifth-largest economy will abruptly abandon the league without an agreement.

The increased risk of a disorderly Brexit has also increased the demand for a second referendum to break the deadlock. 1

9659002] Earlier this month, embattled Prime Minister Theresa May voted on her Brexit deal after admitting that legislators would most likely vote against it.

Mai is now looking for "assurances" from EU leaders about nature The so-called Irish backstop after Brexit.

The Backstop Plan is essentially a legally binding insurance policy to ensure that there are no hard borders between Northern Ireland and the Republic of Ireland, regardless of future trade negotiations between the UK and the EU.

Critics of the current deal say Britain could indefinitely include the country in a customs union with the EU.

However, May has repeatedly insisted that his deal be rejected, then Britain could be forced to go no-deal – an option that big business leaders fear – or the entire Brexit process could be reversed completely.

The Prime Minister postponed the vote on his Brexit deal for the third week of January.

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