The Bank of England’s (BoE) Monetary Policy Committee (MPC) has voted unanimously to maintain the bank rate at 0.75 per cent at today’s meeting.

The committee felt that keeping bank rate at 0.75 per cent was the most appropriate approach in order to meet the 2 per cent inflation target.

Commenting on the decision, XPS Pensions Group chief investment officer Simeon Willis said: “No surprises today. The MPC’s job is relatively straight forward at the moment because CPI inflation at 1.9 per cent is tracking very close to the 2 per cent target and GDP data is within the anticipated range.

“Whilst European and US markets are seeing downward pressure on interest rates the direction of travel is gradually up for the UK, but with the enduring political uncertainty, the decision to stick not twist was inevitable.”

Fineco Bank global head of brokerage and business development Alessandro Capuano added: “While rumours of an imminent interest rise abound, anaemic growth in the UK economy and the prospect difficult Brexit negotiations looming have stopped MPC in their tracks once more. In fact, with CPI-inflation steady, global GDP growth slowing to a 10-year low and every other major central bank is either cutting rates (RBA, RBNZ) or hinting at easing (Fed, ECB) a rate cut would probably make more sense.

“The response from the market has been to price out any prospect of a rate hike this year. Meanwhile, domestic inflation is on the rise. Interest rates will at some point need to rise to keep inflation in check, but without clarity around Brexit tying the hands of the BoE, that won’t be any time soon.”

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