The Bank of England’s Monetary Policy Committee (MPC) has again voted unanimously to maintain the bank rate at 0.5%.

The MPC also voted unanimously to maintain the stock of purchased assets financed by the issuance of central bank reserves – so-called ‘quantitative easing’ – at £375 billion.

Andrew McPhillips, chief economist at Yorkshire Building Society, said: “It is likely that if the UK votes to leave the EU, the MPC will cut base rate in an attempt to stabilise the economy. Though this could lead to an increase in inflation due to the depreciation of Sterling, the Bank is likely to be willing to trade that off against trying to maintain economic growth and avoid the risk of increasing unemployment. That said, even if the base rate is cut, mortgage interest rates may increase. Lenders will need to ensure that they remain profitable as wholesale and retail funding becomes relatively more expensive. This is most easily achieved by increasing borrowing costs.

“Conversely, a vote to Remain would most likely mean that interest rates would increase further down the line at a gradual pace depending on future growth in inflation.“