Sterling hit by Brexit fear, Bank of England warns

Bank of England policymakers said sterling had been dealt a big hit by uncertainty in the run-up to the referendum on EU membership and that growth could slow, after voting unanimously to keep rates steady.

The central bank said the upcoming vote on June 23 could delay some spending decisions in Britain, though it said recent indicators suggested growth would keep the same momentum this quarter as it had at the end of last year.

The bank reiterated that interest rates were more likely to rise than not over the next two years and that when they did the rise would be gradual, given likely headwinds.