The Bank of England has left interest rates unchanged against a background of a continuing decline in real wages and consumer spending power, as well as ongoing uncertainty over Brexit. Earlier this year there had been speculation that the Bank would put up interests for the first time in a decade to curb a sharp rise in inflation, in part caused by the fall in the value of the pound after the Brexit vote.
But since then the economy has slowed down. British consumers have suffered the longest decline in spending power since the 1970's with disposable income falling for the last three quarters and household savings at an all time low.
Official data published in June 30th confirmed that the world's fifth-biggest economy went into a sharp slowdown in early 2017.
The European Central Bank has also left interest rages unchanged for an extended period despite an increase in the forecast for economic growth in the eurozone.