Interest rate to stay at 5%

The Bank of England's MPC has voted to keep interest rates at 5% as expected by consensus. Althoug...

The Bank of England's MPC has voted to keep interest rates at 5% as expected by consensus. Although some analysts forecast an increase to curb spiralling inflation, the threat of recession in the UK was enough to urge members to maintain the current rate. Inflation currently stands at 3.8% although the Government target is 2%. Last month one MPC member voted for in an increase in rates whilst another voted for a cut.