Bank of England base rate decision leaves the UK ‘between, recession and stagflation with risk on every screen’

Rates were left unchanged at 4.75% as on Thursday the Bank of England’s Monetary Policy Committee (MPC) voted 6 to 3 in favour of holding rates flat, with three members preferring to cut rates by 0.25% to 4.5%

In the near-term inflation is expected to “continue to rise slightly” as the market was expecting rates to remain at 4.75% prior to the announcement.

Nicholas Hyett, Investment Manager at Wealth Club, said, “In the bleak midwinter, Interest rates were frozen, GDP went backwards, Inflation rates they rose, consumers they were struggling, struggling, struggling so, in the bleak midwinter, not so long ago.

“Rock and a hard place, Bailey in-between, recession and stagflation, risk on every screen, Fed already stalling, with a hawkish turn, cut to boost the market, or hike and watch it burn.”