As expected, the Bank of England has kept the base rate at 0.5 per cent.
Barry Naisbitt, chief economist at Santander UK, comments: “The Monetary Policy Committee’s (MPC) decision to hold Bank Rate today was, once again, not a surprise.
“Although last month’s decision to hold rates continued the run of split votes, with two MPC members voting for an increase in rates, the incoming economic news over the past month has not been strong enough to support a change in view for the majority of MPC members.
“The latest indicators of economic activity are continuing to show steady growth and the unemployment rate has now fallen to 6 per cent. Aided by falling oil prices, inflation is now at 1.3 per cent and the Bank of England expects it to fall in the coming months. The low inflation backdrop should provide scope for the MPC to continue to hold rates at their current level for a while longer.”
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