Business

Bank of England likely to hint at further rate hike

08 of February 2018

Placards and banners opposing Brexit on railings as The European Commission's Chief Negotiator for the UK exiting the European Union, Michel Barnier is at 10 Downing Street for a meeting, outside the Houses of Parliament, London, Monday, Feb. 5, 2018. (AP Photo/Tim Ireland),Placards and banners opposing Brexit on railings as The European Commission's Chief Negotiator for the UK exiting the European Union, Michel Barnier is at 10 Downing Street for a meeting, outside the Houses of Parliament, London, Monday, Feb. 5, 2018. (AP Photo/Tim Ireland)

The Bank of England is expected to keep interest rates on hold later Thursday but hint that another increase could be coming in springtime. Three months after it raised its main interest rate for the first time in a decade in an attempt to get inflation down, the bank is expected to stand pat for now given uncertainties related to discussions surrounding Britain's departure from the European Union.

LONDON (AP) — The Bank of England is expected to keep interest rates on hold later Thursday but hint that another increase could be coming in the spring.

Three months after it raised its main interest rate for the first time in a decade in an attempt to get inflation down, the bank is expected to stand pat given uncertainties related to Britain’s departure from the European Union.

The Brexit talks are set to officially recommence soon, but there’s a lack of clarity over what Britain’s future relationship with the EU will be after Brexit in March 2019.

Many in the markets think that some sort of agreement over the immediate post-Brexit period will be thrashed out soon, allowing the bank to raise its main interest rate again from 0.5 percent.