Bank of England holds interest rates at 0.5% despite Brexit strain

Despite markets widely expecting the Monetary Policy Committee (MPC) to cut rates by 25 basis points to 0.25% this month, the committee voted by a majority of 8-1 to hold. However, the bank said most members of the committee expect monetary policy to be loosened in August. It said: "Markets have functioned well, and the improved resilience of the core of the UK financial system and the flexibility of the regulatory framework have allowed the impact of the referendum result to be dampened rather than amplified. "The committee discussed various easing options and combinations thereof...