The UK central bank maintains the main interest rate at 0.75 percent, as was generally expected on the financial markets. In August last year, the Bank of England (BoE) boosted interest rates by a quarter of a percentage point.
With this, the BoE again makes its position towards the brexit. The central bank had already said in December that the uncertainty surrounding the Brexit has increased considerably. In the absence of an agreement with the European Union, the British economy can be hit hard.
The decision to leave interest unchanged was unanimously taken by the BoE directors. Most economists believe that the British central bank will not raise interest rates this year. The BoE also reported that more and more companies are taking measures for a no-deal Brexit.
Prime Minister Theresa May asked on Wednesday to postpone the UK’s departure from the EU until 30 June. This request met with resistance in Brussels in connection with the European elections. They are held from 23 to 26 May and every EU country is obliged to organize them. May does not want her country to participate in the European elections again. According to a spokesman for the European Commission, a short delay can therefore not be longer than 23 May, and Jean-Claude Juncker, the President, pointed this out to May by telephone.