The Bank of England voted unanimously to maintain rates at their record low of 0.5 percent at their monthly meeting on Wednesday.

The EU referendum weighed heavily on the minds of Monetary Policy Committee members, with the minutes saying:

“EU referendum may cause softening in first half UK growth, MPC will react more cautiously to data before EU vote”.

The minutes also mentioned the implication of Brexit on longer-term monetary policy, saying that it “may prompt an extended period of uncertainty and may have a significant impact on pound and asset prices, pushing down demand in the short term”.

It is clear from today’s minutes that a rate rise is extremely unlikely before the EU referendum on the 23rd June.

In terms of inflation, twelve-month CPI increased to 0.5 percent in March but remains well below the 2 percent inflation target, largely due to flagging energy and food prices.

Globally, the MPC acknowledged that the risks from China have lessened somewhat, but that GDP figures from the US remain disappointing. The UK economy has picked up a little, helped by a moderate rise in oil prices and strengthening of the pound.