The UK central bank maintains the main interest rate at 0.75 percent, as was generally expected on the financial markets. Policy makers in London have already taken a step back in recent months due to the continuing uncertainty about the Brexit.
Last August, the Bank of England (BoE) raised interest rates for the last time, by a quarter of a percentage point. The decision to leave the interest rate unchanged was unanimously taken by the BoE directors.
The central bank has also somewhat boosted its growth expectations for the coming years and has slightly lowered inflation expectations. All this means, according to the BoE, that eventually several more interest rate steps will be needed to get inflation to the desired level.
The postponement of the Brexit had no consequences for the economic picture in the forecasts of the BoE. Brussels agreed last month to give the British more time to arrange their departure. A flexible end date of 31 October has been stuck there. At the end of June, EU leaders will look at the situation.