BoE leave interest rates unchanged at 5.25%
08.02.07
Following last month’s surprise interest rate hike, the MPC left rates on hold at 5.25% at today’s meeting. Whilst the market is still pricing in two further rate hikes in 2007, it is thought that the committee will look to take a ‘wait and see’ approach before tightening again. Last month saw the first signs that the housing market may be slowing in the wake of recent rate hikes however activity on the high street remains strong. Attention now turns next week’s quarterly inflation report for confirmation that inflationary pressures are likely to force the MPC into action in the months ahead.