BoE hold rates at 5%

The rate freeze follows last month’s quarter point rise from 4.75% to 5% the highest level for five years when the MPC vote was split 7-2 in favour of a rise. The MPC is likely to want to see if the most recent rise in the base rate has the effect of slowing down inflation, as well as sectors such as the housing market, before making another decision as to whether or not to raise rates with February thought the most likely time for another possible rise in rates. Other commentators, such as Nationwide Building Society, believe interest rates will peak at 5% with the MPC likely to take li...