Brexit brings with it fresh inflation headaches for UK

The EU looks to be leaving the door open for a deal that could avoid some of the major downsides of a ‘hard’ Brexit, writes Oliver Mangan

The Bank of England may be regretting that it cut rates last summer in the aftermath of the UK vote to leave the EU, given that the British economy has held up much better than expected and inflation has picked up sharply on the back of the big fall in sterling.

The March meeting of the Bank of England’s Monetary Policy Committee (MPC) concluded with no changes to policy. However, one member was of the view that inflation was rising quickly and likely to remain above target for at least three years and, thus, voted for a rate increase.