The Monetary Policy Committee of the Bank of England have agreed to maintain interest rates at their all-time low of 0.5% for a record 25th month, despite increasing calls for an interest rate rise to tackle rising inflation.
The Bank of England has announced that interest rates are to remain at 0.5% following today’s meeting of the committee responsible for setting central rates, despite growing concerns over February’s 4.4% inflation figures.
The Monetary Policy Committee, which is composed of a body of 9 economists and academics, voted to hold interest rates for another month, following concerns over the efficacy of higher interest rates in the current economic climate.
There is a growing chorus of concern from analysts and commentators that the stubborn, above-target inflation levels is stifling economic growth and weakening the UK recovery, with calls for a rise in interest rates becoming more vocal month-on-month.
However, with the UK economy still fragile, and economic growth little better than stagnant, others have suggested that an interest rate rise could do little to hamper inflation while having a disproportionately negative effect on growth and the cost of borrowing.