Bank of England officials said uncertainty stemming from Britain’s referendum on its European Union membership may hold back investment and economic growth as they kept their key interest rate at a record low.
The nine-member Monetary Policy Committee, led by Governor Mark Carney, unanimously agreed to maintain the benchmark at 0.5 percent -- where it’s been for seven years.
The decision was taken against a backdrop of feeble inflation, slowing global expansion and concern that the U.K. will vote to quit the EU on June 23.
“There appears to be increased uncertainty surrounding the forthcoming referendum,” officials said in the minutes of their March meeting. “That uncertainty is likely to have been a significant driver of the decline in sterling. It may also delay some spending decisions and depress growth of aggregate demand in the near term.”
Carney has already found himself embroiled in the political battle and has been criticized by some lawmakers for what they said were biased remarks favoring the U.K. staying in the EU.
Prime Minister David Cameron has cited Carney, noting the governor’s comments that leaving the EU would pose a risk to financial stability.
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