By Max Clarke
As predicted and hoped, the Bank of England’s Monetary Policy Committee has again voted to maintain the historically low base rate for a record 28th month.
The 0.5% base rate is to be maintained, despite retail price inflation reaching 5.2% last month, in a bid to support the private sector recovery.
Bank financed asset purchases- at £200 billion- have also been left untouched.
While high inflation is damaging savers and eroding consumer confidence, the rate will be kept low in order allow industry to grow.
"An increase in interest rates will do more harm than good in the short term," commented World First currency exchange Chief Economist, Jeremy Cook.
“The weakness of the manufacturing and services sectors as shown in recent industry figures, plus the likelihood of a poor figure for GDP in Q2, only leaves inflation as a viable reason to raise interest rates."
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