BoE votes to freeze interest rates

The Bank of England has voted to freeze interest rates at 5.25% in March.

Following the last base rate rise in January, the BoE’s Monetary Policy Committee has kept interest rates stable in February and March.

There has been three interest rate rises since August as the Bank tries to bring inflation back down to the self-imposed 2% target.

The latest inflation report in February revealed inflation had fallen from 3% to 2.7%, although the Bank warned that these figures could be misleading.

Industry pundits and economists have largely been split on whether the MPC would vote for a base rate hike in March or another freeze.

After the base rate was frozen in February many agreed that a rate rise was inevitable in March, and despite the inflation rate improving the BoE itself warned that a rate rise couldn’t be ruled out.

However, as February progressed into March, UK interest rates were increasingly tipped to stay on hold.

More to follow…