Brexit is putting firms off giving pay rises, says Bank of England

After voting to hold interest rates, Bank warns rising prices and weak wage growth will continue to squeeze living standards

Brexit uncertainties have discouraged some firms from awarding pay rises, the Bank of England has said, as it warned that rising prices and weak wage growth would continue to squeeze living standards this year.

The Bank's rate-setting committee voted by 6-2 to leave official borrowing costs at their all-time low of 0.25%, according to minutes from their meeting released on Thursday. But they hinted that rates would have to rise over the coming year to keep inflation in check.

Inflation is when prices rise. Deflation is the opposite - price decreases over time - but inflation is far more common.

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