Bank holds rates at 5pc

Commenting, Peter Hensman of Newton Investment Management, said the decision was expected, despite the minutes of the last meeting of the MPC in which most members expressed concern that inflation risks were skewed to the upside. "The evidence of a weakening growth environment is sufficient in the near-term to keep policy unchanged," he said. Richard Snook, economist at the cebr, added: "There is a clear consensus that the UK economy would benefit from a monetary easing. However, despite a declining inflation outlook, the Bank will be cautious about the impact of moving too soon on me...