MPC meeting this week

The Bank of England’s monetary policy committee (MPC) is due to make a decision on the base rate this week.

MPC meetings are held in the first week of every month and the committee decides whether to raise, lower or freeze the interest based on economic considerations.

Last month, the MPC kept the base rate at 5.75 per cent, but the preceding 12 months saw five rate rises.

Mortgage borrowers and credit card holders are among the groups that will be waiting for news of the latest decision with interest.

Trevor Williams, chief economist at Lloyds TSB Corporate Markets, believes that the MPC will hold rates again this month.

“The economy remains pretty robust, with growth and retail sales figures both still strong, meaning a rate cut is almost certainly ruled out,” he said.

Economic reports show that inflation is running below the three per cent upper limit that prompted the rate rises last year.

© Adfero Ltd

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