- Economists and investors expect the MPC to hold the benchmark cost of borrowing at 3.75% on Thursday, where it has sat since December last year.
- The hold reflects the BOE's wait for more evidence that a fresh bout of inflation risks a damaging wage-price spiral before shifting policy.
- The decision lands with the UK economy buffeted by events in the Middle East, adding an external shock to the inflation and growth backdrop.
Quotes
“The Bank of England is expected to hold interest rates as it waits for more evidence that a fresh bout of inflation risks a damaging wage-price spiral.”
“Economists and investors expect the Monetary Policy Committee to leave the benchmark cost of borrowing at 3.75% on Thursday, where it's been since December last year, as the economy is buffeted by events in the Middle East.”