Bank of England holds rates steady
The Bank of England still keeps its interest rate at a record low of 0.5% as it balances the risk of rising inflation. The Monetary Policy Committee likely had a debate as they try to balance the inflation pressures with that of a fragile economic recovery.
The pressure to increase interest rates are likely to remain with continued rising inflation, and recent positive data from the manufacturing and construction sectors, though services data has continued to slip back, but still remains positive.
Some economist expect rate rise by the third quarter of this year. Money markets are betting in an earlier rise and expects the central bank to raise rates before the end of the year while investors are paying on a rise in May.
Interest rates in the UK have stood at 0.5% since March of 2009 when the Bank of England slashed rates to an all-time low and launched an unprecedented program of quantitative easing.