Bank of England holds rate

The decision was widely expected by the market, as it is still unclear which of the twin threats of inflation and a slowing economy poses the greatest problem. While the minutes of last month’s meeting showed a rate increase was considered, many commentators still believe the next move will be down. Ian Kernohan, economist at Royal London Asset Management, said: “With growing evidence of recession, the next Inflation Report [out on 13 August] should signal a decisive shift in favour of reducing rates and I still expect cuts before the end of the year.” But Aegon Asset Management head of s...