Bank of England holds base rate for 84th month


The Bank of England’s Monetary Policy Committee has kept the base rate at 0.5 per cent in its March meeting.

The committee voted 9-0 to keep base rates at their current low levels, the same vote as the February meeting.

Markets are increasingly pessimistic of a rate rise this year, with many pushing their expectations for the first rise back to 2017.

In particular, the MPC highlighted that inflation remains “well below the 2 per cent target”.

The minutes say: “This is due predominantly to unusually large drags from energy and food prices, which are expected to fade in the coming months.  But core inflation also remains subdued, a consequence of the past appreciation of sterling, weak global inflation and restrained domestic cost growth.”