OK, it's still 4.5 per cent. The BBC believes it's partly due to Hurricane Katrina and the possible effect on the economy as well as the increasing petrol prices that preceded it; The Guardian also notes comments from those who believe we're already under inflationary pressure and shouldn't invite more.
The FT has similar comments to everyone else - it's the expected decision. As a side note, the British Chamber of Commerce has obviously done a good job circulating its cautious welcome to everyone as it's quoted widely.
Overall it seems growth is weak but inflation is edging upwards, so we shouldn't expect anything too marvellous in the way of cuts for a while. But what about savers, who'd like to see rates increase - and indeed heavy credit card users, who might welcome a cut but who'd actually see themselves fall further into debt if it happened?
Any readers like to offer their pennyworth on what happened today and what should have happened instead?
