Bank of England leaves rates unchanged

The Bank of England made no statement to explain its thinking after its MPC meeting on Thursday 8 April left interest rates unchanged at 4%. Much speculation preceded the meeting with many analysts predicting a rate increase.

Financial markets reacted strongly to the decision, with sterling off half a cent against the dollar and UK interest rate futures up sharply, as traders reckoned the BoE was sticking to its approach of raising rates gradually.

Futures markets are pricing in borrowing cost