MPC votes 7-2 to hold Bank Rate at 0.5%

[scooterscot]

In short Duke, a sheet storm. Not to mention filthy beaches.

Bournemouth beach covered in litter after Bank Holiday

[NigelJK]

Wonder how things are back in Blighty

[scooterscot]

Further evidence the government's strategy simply isn't working. Dead end jobs of little value have skewed the unemployment figures. All prices going up, disposable income going down, despite the spin. We are floundering, when will this dead end approach be terminated. We need a new impetus.

[Martin@AS Financial]

Taken from the Financial Reporter:

The Bank of England's Monetary Policy Committee have voted 7-2 to maintain Bank Rate at 0.5%, the same ratio as in its last meeting.

The MPC said the Bank's projections in its latest inflation report are "broadly similar to those set out in the previous report".

Citing reasons for holding Bank Rate, the MPC noted that GDP growth fell to 0.1% in Q1 and that economic activity is "little changed".

CPI inflation also fell to 2.5% in March, lower than expected at the time of the February Report.

Frances Haque, Santander's UK chief economist, commented: “The MPC’s decision was widely expected given the disappointing economic data for Q1 2018, with GDP growth being significantly below expectations and inflation surprising to the downside.

"Given previous remarks from the MPC on the timing and the path of future rate hikes, the question now remains as to when the Committee will look to increase rates in 2018, assuming that growth picks up again in the coming months.

"As Governor Carney stated in his remarks in an interview in April, the MPC is, “conscious that there are other meetings over the course of this year” and although the consensus view has been that a hike would come with an inflation report, this does not have to be the case. However what it will depend on is the degree to which the economy recovers from the Q1 dip and how it compares to the Bank of England’s forecasts over the rest of the year.”