INTEREST rates should remain at 0.5 per cent due to the economic uncertainty caused by the EU referendum, the North East Shadow Monetary Committee (MPC) has said.

The committee also said a Brexit could put further pressure on any future rate decisions.

The MPC is a partnership between The Northern Echo, the North East Chamber of Commerce and Darlington Building Society, which considers the state of the region’s economy and gives experts from a variety of sectors the opportunity to argue their case for a shift, or hold, in the rate.

Christopher White, committee chairman and finance director at Darlington Building Society, said: “The MPC voted unanimously to hold interest rates to maintain a level of stability in the economy that has been impacted by the EU referendum.

“The North-East economy has some areas of strength, particularly in construction and some elements of manufacturing, and maintaining rates is in the best interests of these and other industries.

“The outcome of the referendum will have a significant impact on interest rate decisions in the future.

“The factors upon which future decisions are made may have to be judged differently, which only adds to the current air of uncertainty.

“A remain vote is likely to lead to higher levels of certainty in the economy, while a Brexit vote may lead to continued short-term uncertainty, which could dominate business thinking for at least the next two years.”