“Keeping interest rates unchanged will feel like a particularly tough break for those consumers battling against high mortgage costs and firms fearing more tax hikes in the Budget.
“This latest decision confirms that the pace of policy loosening remains painstakingly slow with rate-setters likely wanting to see more evidence of weakening inflation and the outcome of the Budget before sanctioning another rate cut.
“The razor-thin vote in favour of this outcome suggests that worries among rate-setters over an ailing economy remain substantial, keeping the door open for a December interest rate cut, despite concerns over elevated inflation.
“The Budget is a notable obstacle to a December rate cut as while higher taxes can be deflationary, the upward pressure from any rise in business costs may mean that inflation is more stubborn than the Bank of England is forecasting.”
ENDS
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