Commenting on today's Monetary Policy Committee decision and latest Bank of England inflation report, John Hawksworth, chief economist at PwC, said:
"As expected the Monetary Policy Committee (MPC) voted unanimously to leave interest rates on hold for now, which was unsurprising given the current political and economic uncertainties related to Brexit.
"At the same time, the MPC has raised its GDP growth forecast since February, assuming a reasonably orderly Brexit can be achieved, and this translates into inflation moving steadily above target in the medium term.
"If events do develop along these lines, then the MPC is likely to start raising interest rates gradually as soon as the Brexit outcome becomes clearer and it could do so at a somewhat faster pace than implied by market expectations prior to today's report."
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