The Bank of England is set to leave interest rates on hold at a record low 0.25% this week, despite an expected uptick in the rate of inflation. With data on the economy pointing to this year’s weaker growth continuing, seven members of the monetary policy committee (MPC) — including Bank governor, Mark Carney — are predicted to vote to leave rates unchanged. Two, Ian McCafferty and Michael Saunders, are likely to vote for a quarter-point rise over fears higher inflation is becoming entrenched. Figures on Tuesday are expected to show inflation rising again towards 3%. Investec predicts a 2.8% rate for August, up from 2.6% in July, as does Scotiabank.

Source: The Times September 09, 2017 23:03 UTC