The Bank of England’s committee of rate-setters has voted unanimously to maintain the current interest rate of 0.5pc. The Monetary Policy Committee said it believed rates would go up at least once in the next two years, and it will need to increase at this rate to ensure inflation returns to the target level or 2pc. Inflation is likely to stay below 1pc until the end of the 2016. See a full inflation report made available by the Bank of England here.
What are the forecasts?The MPC adjusted its forecasts for economic growth in 2016 and 2017 downwards:
- Predicted growth 2016: 2.5pc
- Adjusted growth 2016: 2.2pc
- Predicted growth 2017: 2.7pc
- Adjusted growth 2017: 2.4pc