BoE surprises markets by keeping rates on hold

Rate stays: Pedestrians walk past the Bank of England in the City of London. The central bank has kept its interest rate at 0.5, but signalled a possible August cut in response to Britain’s vote to exit the EU. – AFP See Page 3

LONDON: The Bank of England (BoE) kept interest rates unchanged yesterday, wrong-footing many investors who had expected the first cut in more than seven years as Britain’s economy reels from last month’s Brexit vote.

BoE said it was likely to deliver stimulus in three weeks, possibly as a “package of measures” once it has assessed how the June 23 referendum decision to leave the European Union has affected the economy.