EU Referendum Fears Casting a Cloud Over British Economy, Warns Bank of England

by Peter Spence, Economics Correspondent

The coming referendum has begun to weigh on the British economy, the Bank of England has warned, as it suggested that the vote could cloud its understanding of the UK’s recovery.

“There are some signs that uncertainty relating to the EU referendum has begun to weigh on certain areas of activity”, the monetary policy committee (MPC) – which decides on UK interest rates – said in the aftermath of its April meeting.

It continued: “Some decisions, including on capital expenditure and commercial property transactions, are being postponed pending the outcome of the vote.” The MPC said that this behaviour could lead “to some softening in growth” in the first half of the year.

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