Base Rates June 24, 2016 12:00 am The sharp fall in Sterling following the Brexit vote may alter the timing of Base Rate rises. A weak currency is inflationary – all the things we import become more expensive. If inflation increases the Bank of England may be forced to raise rates to counteract this. Counter-acting this will be any recessionary effects from Brexit. If the economy starts to falter, the Central Bank will be very wary of raising base rates and adding to the contractionary pressure.
