Policymaker Martin Weale supported keeping interest rates unchanged this month
by Szu Ping Chan
The Bank of England was right to keep interest rates on hold in July, according to a top official, who said there was little evidence that households and businesses were “panic-struck” following the Brexit vote.
Martin Weale said that, while it was “quite likely that demand will weaken more than supply in the near term”, it was important that the Monetary Policy Committee (MPC) that sets interest rates considered the impact of the recent drop in the pound on inflation, which could overshoot its 2pc target, as well as growth.
While he said the likely impact on growth could strengthen the case for early action, the “early appointment of a new Prime Minister will have gone at least some way to restore confidence”.