LONDON (AP) — Under normal circumstances, the Bank of England would be looking to cut interest rates. The economy is slowing and inflation is below target.
But these are no normal times in Britain, with a general election due Dec. 12 that will have deep implications for the economy, including for the still unresolved issue of Brexit.
On Thursday, the Bank of England is widely predicted to keep its main interest rate at 0.75% despite the gloomy economic backdrop.
"The upcoming general election has added to the fog of political uncertainty already hanging over the U.K. economy because of Brexit," said Kallum Pickering, senior economist at Berenberg.