Bank of England set to hold rates ahead of UK election

A pro-Brexit supporter demonstrates with anti-Brexit protesters behind him outside the Houses of Parliament on the final day of the lawmakers sitting before the start of the general election campaign in London, Tuesday, Nov. 5, 2019. Britain goes to the polls on Dec. 12.

 The Bank of England is set to keep its main interest rate on hold at 0.75% as it awaits more clarity over Britain’s departure from the European Union.

The central bank’s nine-member Monetary Policy Committee has been reluctant to move interest rates for over a year given the huge uncertainty surrounding Brexit. Britain’s general election on Dec. 12 has the potential to affect the outcome of Brexit.

The Brexit impasse is increasingly weighing on the economy and the central bank is predicted Thursday to downgrade its growth forecast for next year from the previous 1.3% largely because of weakness in business investment.

It’s unclear whether the election will lead to more Brexit clarity, though, particularly if no one party manages to win an outright majority.