Wednesday, April 20, 2011
Bank stuck on hold
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

The 6-3 vote for no change in Bank rate this month was no surprise and is likely to be repeated again in May. The Bank is wrestling with a number of factors - the weakness of consumer spending (in spite of the need for rebalancing), the prospect of an upward revision in its inflation projections in May and the puzzling strength of imports.

Having looked to be moving towards a hike, the tone of the latest minutes suggests the monetary policy committee is some way away. The markets don't expect a move until the autumn. The minutes are here.