Bank of England split on interest rates

The Monetary Policy Committee of the Bank of England has again voted to keep interest rates at 0.75% where they have been since August 2018. However 2 members of the committee called for an immediate cut to rates to support the economy.

Michael Saunders and Jonathan Haskell, both voted to cut interest rates to 0.5%, from the current rate of 0.75% as they felt inflation, which currently stands at 1.7%, suggested that there was little risk that the economy would overheat in the medium term if interest rates were cut.

Financial markets believe rates will be cut to 0.5% in the next 12 months but any decision will depend on the nature and timing of Brexit.