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Interest rates kept on hold
INTEREST rates have been kept on hold as inflation fears deterred Bank of England policymakers from a second rate cut in as many months.
The Bank’s nine-strong Monetary Policy Committee (MPC) left interest rates unchanged at 5.25% after reductions in February and December.
The widely-expected decision following the MPC’s two-day meeting comes amid concerns over inflation pressure from oil prices – which reached a new record today – soaring food costs, and rising household utility bills following price hikes by energy firms.
Global Insight’s chief UK economist Howard Archer said: “Current elevated inflation risks meant that it was too soon for the Bank to be comfortable about cutting interest rates again despite serious concerns about the growth outlook.”
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