EU referendum to delay UK rate hike, says National Institute for Economic and Social Research

The Bank of England will keep interest rates on hold until after Britain’s referendum on EU membership, the UK’s National Institute for Economic and Social Research said as it pushed back its forecast on the timing of an increase.

The institute now predicts the Monetary Policy Committee will lift its key rate from a record-low 0.5% in August, six months later than a previous prediction of February.

Niesr also predicted the fall in oil prices will leave UK inflation at 0.3% this year, down from a 1.1% forecast in November.