The Bank of England’s Monetary Policy Committee (MPC) has opted to hold interest rates at 3.75% amid inflationary concerns caused by increased geopolitical uncertainty.
In the decision today (19 March), MPC members voted unanimously in favour of a hold. David Rees, head of global economics at Schroders, said: "The Bank shelved its planned rate cut at today's meeting as surging energy prices threaten to reignite inflation. Much will now depend on how high energy prices go, and for how long they remain elevated." He continued: "The current levels of oil and gas prices are already enough to add around 1% to headline inflation in the coming months, while shortages of fertilisers could push food inflation higher later in the year." Ed Hutchings, head ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
