Interest Rates Held With Pressure To Cut
Published / Last Updated on 07/11/2019
The Bank of England voted by a majority 7 to 2 to keep interest rates for the 10th month in a row at 0.75%.
The decision made by the Monetary Policy Committee (MPC) was made in a meeting just before the UK was expected to leave the EU on 31st October.
The MPC said in the 6th November meeting “Inflationary pressures could lessen in the near term and be down by 1.25% by the spring. The Consumer Prices Index inflation measure stayed at 1.7pa% in September its lowest since 2016.
The MPC also predicted UK gross domestic product (GDP) growth to pick up during 2020 and had increased by 3% in the 3 months to August compared with 1% in the 3 months to May.
Comment
It is an understandable decision to not 'rock the boat' ahead of a General Election and the continued Brexit struggle.