Bank of England Live: Interest rates held in narrow 5-4 call
Good morning and welcome to the City PM liveblog.
The Bank of England’s monetary committee has decided to hold rates in its first meet of the year.
Markets – and City PM‘s own Shadow MPC – had placed their bets on a hold as the Bank continues its gradual chop to the base rate.
In its decision on Thursday, the Bank’s Monetary Policy Committee voted 5-4 to leave interest rates at 3.75 per cent.
But economists warned that unemployment could jump higher over the coming months. Growth forecasts were also downgraded given firms’ nerves about investment plans and weak demand across the UK economy.
The unemployment rate could peak at 5.3 per cent this year, compared to a previous forecast of five per cent.
Stick with us and we’ll be bringing you the top news of the day.
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