Interest Rates: Emergency Level and No-Deal Brexit

interest rates: At the same time, recent weakness in the pound amid the growing chance of a no-deal Brexit is poised to push up the rate of inflation, triggering a renewed squeeze on living standards, according to The Guardian. Despite some pockets of strength for the economy, there are growing signs of weakness after the Bank of England raised interest rates above the emergency level set since the financial crisis. Pay growth in Britain has dropped to its weakest in almost a year despite the unemployment rate hitting a 43-year low. Ushering in a new era of higher borrowing costs for consumers and businesses, the move comes as ministers prepare the public for Britain crashing-out of the EU without a deal with Brussels. Though GDP growth picked up in the second quarter of this year, it would be premature to conclude that the Brexit-induced slowdown in the UK economy is coming to an end, he said. Writing in the Guardian, Andrew Sentance, a former member of the Bank's rate-setting monetary policy committee, said heightened talk of a no-deal Brexit would hold back business investment, while arguing higher inflation would limit the spending power of consumers. (news.financializer.com). As reported in the news.