Bank of England leaves rates on hold, but fears remain that they will have to rise

As expected the Bank of England’s Monetary Policy Committee (MPC) has decided to leave interest rates unchanged at 0.5%. However, with inflation remaining stubbornly above the target level there is a growing feeling that interest rates may need to rise sooner rather than later. Andrew Sentance, who is a member of the MPC, is already arguing for interest rates to rise, although at the moment it seems as if he is a lone voice amongst committee members.