IoD press release No surprises from the Bank as a majority vote to hold rates at 4.5%
Commenting on the decision of the Monetary Policy Committee of the Bank of England to hold interest rates at 4.5%, Anna Leach, Chief Economist at the Institute of Directors, said:
“The MPC voted 8-1 to hold rates today, with Swati Dhingra the lone member voting for a 25bp cut – notably Catherine Mann has switched back to a hold, from having voted for a 50bp cut last month. The Bank highlight the divergence between survey measures of activity and employment intentions which point to weaker momentum than their official counterparts, which are holding up somewhat better than was expected in February. They also note downside risks to growth from trade and geopolitical uncertainty, both of which have risen. Meanwhile inflation has come in a little higher than expected and inflation expectations among businesses and households are up.
“Overall, modest momentum, low confidence and heightened inflationary risks support the MPC’s plan to be “gradual and careful” in bringing down interest rates.”
