Bank of England set to keep rates on hold over Brexit unease

Bank of England Governor, Mark Carney talks with British Chancellor of the Exchequer Philip Hammond during the G20 Finance Ministers and Central Bank Governors Meeting, Saturday, June 8, 2019, in Fukuoka, Japan. (Kim Kyung-hoon/Pool Photo via AP)

LONDON (AP) — The Bank of England is expected to keep interest rates on hold Thursday but indicate a possible increase later this year despite uncertainty over Brexit.

The rate-setting Monetary Policy Committee is tipped to keep its key rate at 0.75%. Most interest will center on how many on the 9-member panel back an increase.

Though the committee has said rates will increase over the coming year or two, only a couple have suggested they will back an increase sooner rather than later because of concerns that rising wages will lead to higher inflation.

Concerns about the economic outlook due to uncertainty surrounding Britain's departure from the European Union, scheduled for Oct. 31, is likely to be the main reason why the majority opt to keep rates on hold.