FILE - In this Wednesday, March 21, 2018 file photo, Britain's Chancellor Philip Hammond leaves 11 Downing Street to attend the weekly session of Prime Ministers Questions in Parliament in London. Hammond is expected to outline plans to ensure the nation's financial services industry can thrive after the U.K. leaves the European Union when he delivers a speech to top business executives Thursday, June 21, 2018. (AP Photo/Kirsty Wigglesworth, File)

UK central bank keeps rates low amid Brexit uncertainty

June 21, 2018 - 7:02 am

LONDON (AP) — The Bank of England has kept interest rates on hold amid conflicting signals on the economy and Brexit uncertainty.

Policymakers voted 6-3 to keep the main rate at 0.5 percent as economists looked to their August meeting, when the next set of quarterly forecasts are published.

Policymakers face a dilemma on the timing of the next increase. Wage growth has stalled but inflation remains above the 2 percent target, at 2.4 percent.

Howard Archer, chief economic adviser at the EY Item Club, says it's "touch and go as to whether the Bank of England raises interest rates in August or holds off until November."

Later Thursday, Treasury chief Philip Hammond is due to deliver a speech outlining plans to ensure the financial services industry can thrive after Brexit.

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