MPC

Sterling was weaker against other major currencies after the Bank of England cut its growth forecast for this year.

The Bank's decision to maintain interest rates splits opinion among economists.

There are clear signs of a rift within the MPC over interest rates as deputy governor Paul Tucker said he is close to voting for a rise.

ON BONDS

Managers have been buying gilts in the view interest rates will stay lower for longer as the MPC revealed last week it considered a second round of QE in its June meeting.

ALL RATE HIKE BETS ARE OFF

The Bank of England's Monetary Policy Committee (MPC) remains split on interest rates despite UK inflation remaining at a two-and-a-half-year high, as fears of a eurozone shock persist.

Andrew Sentance, who yesterday stepped down as a member of the Bank of England (BoE) Monetary Policy Committee (MPC), has condemned the Bank's refusal to raise interest rates.

Andrew Sentance has warned against any further delay in raising rates in his last speech as a member of the Bank of England's Monetary Policy Committee.

Dale Spencer, chief economist at the Bank of England, said interest rates in the UK should rise even though the economic recovery has failed to take hold, according to the Financial Times.