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Bank rate stays put; BoE signals ‘sharp’ inflation rise
By
Gary Adams
4
th February 2021
2:11 pm
The Bank of England’s monetary policy committee has decided to keep the base rate at 0.1 per cent by unanimous decision.
The MPC minutes of the decision also report that 12-month inflation rose from 0.3 per cent in November to 0.6 per cent in December and that this figure is “is expected to rise quite sharply towards the 2 per cent target in the spring, as the reduction in VAT for certain services comes to an end and given developments in energy prices.”
It says that GDP is expected to have risen to “around” 8 pr cent lower in the final quarter of 2020 than in Q4 2019, which is stronger than expected in the November report. ....

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