The Bank of England’s Monetary Policy Committee (MPC) decided to keep interest rates on hold today at 5.25%. A decision which is in line with market expectation and predictions. It made no statement to accompany its decision but policymakers had been suggesting the bank had to balance the demands of slowing growth and rising inflation. Soaring oil prices and the rising cost of food is putting a huge pressure on inflation around the world. The policymakers are concerned that inflation could rise to around 3% in the coming months which will require the central bank Governor, Mervyn King to write an explanatory letter to the government. However, economists are predicting further interest rate cuts in the coming months.
Posts Tagged ‘MPC’
Bank keep rates on hold at 5.25%
Thursday, March 6th, 2008Base rate held at 5.5%
Saturday, January 12th, 2008
On Thursday, the bank kept rates on hold at 5.5% despite pressure to cut rates after increasing signs of a consumer spending slowdown. But most economists believe that this decision makes the need for a cut next month, all the more pressing. But the MPC is charged with keeping a lid on inflation which is currently running at 2.1% instead of it’s 2% target.
