MPC Leaves Rates, Inflation Remains a Concern
May 8, 2008
As expected the Bank of England elected to keep interest rates on hold at 5.0%. In light of significant increases in pipeline inflation and reports of rising prices in many sectors, the MPC have chosen to maintain a gradual approach to monetary easing. They further stated that they will be increasingly mindful of recent developments in UK financial markets and their implications on the housing sector and consumer confidence. Immediately following the interest rate announcement the Pound firmed up against the USD, however, ended the day largely unchanged.