MPC leaves rate at 4%

The Bank of England's Monetary Policy Committee left the repo (interest) rate at 4% today in a decision widely expected by the markets following a recent similar move by the US Federal Reserve. Analysts say the move to retain the rate as is means any increases are unlikely before August, as the MPC will want to see solid evidence of recovery in second quarter figures before tightening up monetary policy. Further indications of the strength of the economy are due from the Bank of England next Wednesday 15 May when it releases inflation and output projections.