The Monetary Policy Committee of the Bank of England has voted to hold interest rates at 4.5%. After a cut last time round…
Prior to reaching 4.5% the rate was held at 4.75% following a cut from 5%. A jumpy path to cutting rates. As expected by markets in the face of ‘economic uncertainty’…
The MPC split was 8-1. Interesting when it comes to the prospects for future cuts…
UPDATE: The Bank’s explanatory notes go into more detail: “While UK GDP growth estimates have been slightly stronger than expected at the time of the February Monetary Policy Report, business survey indicators generally continue to suggest weakness in growth and particularly in employment intentions. In recent quarters, subdued activity has been judged to reflect both demand and supply factors.” Thanks Rachel…
Speaking at his speech on how to achieve “progressive capitalism” Wes Streeting fired a dig and Andy Burnham:
“Bond markets are not bond villains and fiscal rules matter.”