As expected, the Bank of England’s Monetary Policy Committee (MPC) has voted to maintain UK interest rates at the current record low of 0.5 percent. This is the 18th straight month that rates have remained unchanged but minutes from the last MPC meeting indicate that one member has now voted for an increase in each of the past three monthly meetings.
The UK economy did manage to expand by 1.2% in the second quarter, but many analysts believe growth has slowed since then.
Lai Wah Co, CBI head of economic analysis, said the MPC decision had been widely expected.
“In recent weeks there has been more talk about the need to expand monetary policy, amid concerns about how quickly growth momentum will fade in the coming quarters at home and abroad,” noted Lai Wah Co, CBI head of economic analysis. “However, economic indicators still suggest the UK recovery is on track, although we expect it to be bumpy and slow.”
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