LONDON (MNI) – The Bank of England Monetary Policy Committee
produced no surprises at its March meeting, leaving Bank Rate on hold
at 0.5% and issuing no policy statement.
A Market News survey conducted prior to the meeting found analysts
split between forecasting the first hike in May or August, with only one
predicting a move in March. The MPC’s track record shows policy moves
are more likely to come in Inflation Report months – and after no move
following the February report – the debate is over what will happen in
May.
The March policy decision marks the second anniversary of the first
time the MPC cut Bank Rate to its record low 0.5% level, reducing it
from 1.0% at its March 2009 meeting.
Analysts now believe the end of the prolonged policy pause is in
sight. At the February meeting three of the nine member MPC voted for a
rate hike and most MPC agreed the case for a hike had strengthened.
The minutes of the MPC’s March meeting will be published on March
23.
–London newsroom: 4420 7862 7491 email: ukeditorial@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MT$$$$]
