The MPC have voted 8-1 to keep interest rates at their six-year low of 0.5 percent for another month, as speculation increases as to when they will be raised.
Rate-setters cited a fall in global oil prices and disappointing economic growth forecasts as the reason for keeping the central rate low. Governor Mark Carney again reiterated that it would not necessarily follow the Federal Reserve, who are expected to raise rates next week, saying that there was “no mechanical link” between the Bank’s thinking and that of the US.
Analysts have drawn on Carney’s hints and now expect rates to be raised in the third quarter of next year.
10/12/2015
