Bank of England wrong-foots markets as it leaves rates unchanged

Bank of England governor Mark Carney

William Schomberg and David Milliken

The Bank of England wrong-footed investors by keeping interest rates on hold yesterday, but held out the prospect of a stimulus package soon to help the economy cope with Britain's decision to leave the European Union.

The battered pound surged by more than 2pc as the central bank held its Bank Rate at 0.50pc, contrary to widespread expectations of a first cut in more than seven years.