Bank voted unanimously for rates increase in August

It was felt the decision to raise the base rate by 0.25% to 4.25% would help put Consumer Price Index inflation back on target for the 2% long-term rate used as the Bank’s guideline. Although the UK economy still faces risks to growth, the MPC decided inflation still remains a bigger worry. Maintaining a credit tightening could also help limit possible future shocks sparked by excessive consumer borrowing. Some arguments were put forward for a rates decrease, although the MPC “did not find them persuasive”. The next MPC meeting takes place on 8 and 9 September. IFAonline