No change to interest rates

As predicted the Bank of England’s Monetary Policy Committee (MPC) has left interest rates on hold for the 28th consecutive month. Despite inflation remaining above the Bank’s target experts had predicted that in light of weak economic data and a patchy recovery the nine strong MPC would leave interest rates at 0.5%. Inflation is currently 4.5%, well above the 2% target, but the Bank appears torn between controlling inflation, which is having a significant impact on consumers and raising interest rates which could potentially damage the fragile recovery. At the moment the MPC appears to believe higher inflation is the lesser of ...