LONDON (AP) – The Bank of England revised up its near-term growth forecasts for the British economy Thursday as it opted against another interest rate reduction in the wake of the country’s decision to leave the European Union.
The upward revisions came as the Bank of England decided to keep its main interest rate at a record low of 0.25 percent and as the pound enjoyed one of its best days since Britain voted to leave the EU in June after court ruling that lawmakers had to have a voice in the next step toward Brexit.
The pound spiked 1.5 percent on the news that the government can’t trigger the Article 50 process for Brexit without Parliament’s involvement. Invoking Article 50 formally starts the two-year countdown to Britain’s exit.
Bank of England Gov. Mark Carney described the court decision as an example of the ups and downs to come over Brexit and said the bank’s forecasts take many factors into account.
“It’s an example for the uncertainty that will govern this process,” he said while unveiling the bank’s quarterly economic forecasts.