Two MPC members vote for a quarter-point rise but Bank argues rapid reaction risks creating volatility

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The Bank of England has left interest rates on hold, arguing that reacting too quickly to inflation threats risked creating “undesirable volatility”, as the Iran war weighs on the UK economy.

Seven of the nine-person monetary policy committee voted to keep rates at 3.75% as the MPC weighed the threat of higher inflation against the prospect of an economic slowdown.

Exclusive: Economists find Brexit caused 12% depression in UK exports, most of which is due to leaving single market

Brexit has depressed UK exports to the EU by 12%, and rejoining the customs union would undo only a fraction of the damage, research shared with the Guardian shows.

With the UK’s future relationship with the bloc likely to feature prominently in a potential Labour leadership contest, the economists John Springford and Anton Spisak, of the Centre for European Reform, provide fresh evidence of the damage caused by exiting.