Interest rates kept constant by Bank of England
In March the Bank of England’s Monetary Policy Committee voted unanimously to maintain the UK Bank Rate at 0.75%, aimed at meeting a 2% inflation target and helping to sustain employment and growth.
The committee was facing the dilemma of providing a smooth adjustment to the outcome of Brexit negotiations and its impact on trading relationships and returning inflation to a sustainable target.
As the Brexit negotiations stumble to a conclusion, with uncertainty causing concern for many business owners, the bank said that it believes most companies felt they had done as much as they could to prepare for a potential no-deal exit which could impact jobs and economic growth. In a separate report the bank published the results of a survey of 300 companies, of which, 80% said they had done as much as they could to prepare for a no-transition Brexit, up 50% since January.
Transport sector services such as a same day courier Slough based, and in other strategic towns, are likely to be affected by a cliff-edge exit from the European Union and these businesses may need to adjust to new circumstances if the supply of imported goods is affected. If you are looking for a same day courier Slough, this company can help.
The bank believes the economic outlook is likely to depend on the timing of withdrawal, if it takes place at all. The recent extension to Article 50 offered by the EU is dependent upon the UK Parliament accepting the current deal which has been negotiated. The deadline of 22 May, imposed because of the European Parliament elections, means that the House of Commons will have to come to a decision sooner rather than later.
The bank has brought some stability to the currency markets with its decision, but analysts are nervous about the events which lie ahead. Industry leaders and companies like certainty, to allow planning and investment, but the current situation means many companies are nervous.
The transport and logistics industry are likely to be affected if delay on Brexit continues, from international haulage firms to a same day courier Slough.
The economic outlook will hinge on the Brexit negotiations which are ongoing, and rates could move dramatically if there is a fall in the value of the pound adding inflationary pressure to the economy.