The Bank of England has surprised many in the City by leaving the UK’s interest rate unchanged at a record low 0.1%. Many observers were expecting a 15 basis point rise to 0.25% to combat rising inflation.
The Monetary Policy Committee voted 7-2 to leave rates unchanged. It came even as the Bank upgraded its forecast for peak inflation, saying it now expects price rises to hit 5% early next Spring before falling back. The MPC said it expects inflation to return to its 2% target within the next two years.
The interest rate decisions comes on a busy day for corporate news, with results from Sainsbury's, BT and Tate & Lyle and an update from Currys.
