Market expects rate freeze on weak PMI data

The Monetary Policy Committee is expected to hold rates for a 26th month when it publishes its decision later this morning. Bank of England governor Mervyn King is up against three hawkish policymakers calling for a rate rise to combat soaring inflation, which is still twice the MPC's 2% target. Yet data released yesterday showed growth in the UK construction industry slowed sharply in April, with the Purchasing Managers' Index for construction falling from 56.4% in March to 53.3% in April. The results were weaker than expected and supports expectations the BoE will maintain intere...