BOE keeps rates at record low, cuts wage and growth forecasts

London

THE Bank of England (BOE) kept interest rates at a record low again on Thursday and cut its forecasts for growth and wages as Brexit weighs on the economy.

Governor Mark Carney said, however, it would not take much of a pick-up to justify a rate hike. The central bank also reiterated it might raise borrowing costs a bit more than investors expect over the next three years, possibly within a year.

There is a desire among major central banks to move away from post-financial crisis ultra-loose monetary policy, but many are finding it hard to do so without killing off growth.

The BOE saw the impact of Brexit - Britain's leaving the European Union (EU) - dampening household spending power. It now expects Britain's economy to grow by 1.7 per cent this year, down from its May forecast of 1.9 per ce…