May Interest Rate Rise Now Looks Likely

Bank of England voted 7-2 to hold rates at 0.5% today, which some in the City see as a missed opportunity

David Brenchley 22 March, 2018 | 2:26PM

Bank of England - Mark Carney

An interest rate hike in May is now “all but nailed on”, after the Bank of England kept rates at 0.5% on Thursday but hinted that they will be on the move in two months’ time. While it was the expected outcome, some have bemoaned the decision not to raise today as “a missed opportunity”.

The Bank’s Monetary Policy Committee voted 7-2 to hold rates. The outcome was unsurprising, but the two dissenting voices were not expected. Ian McCafferty and Michael Saunders raised worries that inaction now will mean rates will have to rise faster and further in future, but they were over-ruled.

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About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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