The Bank of England (BoE) has followed in the footsteps of the US Federal Reserve today, leaving interest rates unchanged and signalling lower rates for longer, but market attention has turned to inflation fears once again.
At the MPC meeting today, committee members voted unanimously to keep interest rates unchanged at 0.1%, electing to let the economy heat up before raising rates once again. Laith Khalaf, financial analyst at AJ Bell, said the message from the Bank is that "interest rates are going to remain nailed to the floor for the foreseeable future, despite the improving economic picture". "The only thing that might prise rates upwards is a bout of inflation, but that would need to be both sustained and structural to compel the Bank of England to tighten policy," he added. However, he noted th...
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