Bank of England rate hike next year likely to face Brexit Challenges

Upbeat Bank of England (BOE), which is planning to hike rates or atleast intensely debate over that at turn of the year is likely to face challenges of possibilities of Brexit, UK's exit from European Union.

Prime Minister David Cameron, has vowed for a referendum on Uk's stay in European Union if the negotiation between UK and EU fails to deliver desired result. UK is trying to renegotiate its position in EU over some rules such as migrant, benefits, adoption of Euro and London's position as financial capital.

A latest survey by NN investment partners, formerly known as ING investment management institutional investors are concern over the prospects of Brexit.

• 20% of the institutional investors' surveyed believe that Brexit is likely, while almost 50% think it is not.
• 75% of the investors' think a Brexit would have negative impact, with 25% voting for extremely negative.

This week UK prime Minister, Mr. Cameron announced June 2016 has been earmarked as potential time for referendum.

This stands as one key risk that Bank of England (BOE) policymakers will have to prepare for along with rate hike debate.