Carney reverts to unreliable boyfriend mode - UK interest rate held at 0.5%

The Bank of England’s Monetary Policy Committee has voted by a majority of 7-2 to maintain Bank Rate at 0.5%
10 May 2018

https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2018/may-2018

Kevin Doran, chief investment officer at AJ Bell, comments:

“It seems that the recent soft spot in UK data was enough for Carney & Co to revert back to unreliable boyfriend mode once again.  Today’s announcement heaps more pain on savers who have already lost a third of their purchasing power over the past 10 years as inflation has comfortably outstripped the meagre interest earned on their cash.  The prospect of a tight labour market, a bubbling crude and weaker sterling seems set to only stoke inflation higher in coming months, with little solace on offer from the Bank.  In a world where other central banks are seeking to normalise their rates, the combination of slow growth and Brexit uncertainty must surely be raising some concerns about the size of the current account deficit.”

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