Bank of England keeps rates on hold

The Bank of England left interest rates at 4 per cent on Thursday 4 March; economists speculated that the MPC wanted to see how households were adjusting to the higher cost of borrowing.

None of the 30 City economists polled by Bloomberg thought rates would rise on Thursday, with most pencilling in May as the most likely timing for the next quarter-point increase.

The pound fell against both the dollar and the euro as markets were relieved that rates did not go up again, but gilts rose.

James Kn