Bank of England keeps interest rate on hold

Markets Associated Press

The Bank of England has decided to keep its main interest rate at a record low of 0.25 percent as it capped a tumultuous year in wake of the country's decision to leave the European Union.

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Britain's economy has held up much better so far to a Brexit vote than many forecasters expected. Fears over the impact prompted the bank to cut rates for the first time in more than seven years and expand its economic stimulus program in August.

The bank's governor, Mark Carney, has said volatility and uncertainty would govern the process of Brexit, even though negotiations have yet to begin.

Traders in currency markets have fretted since the June 23 vote and the pound has lost almost a fifth of its value — threatening to increase inflation.