Comment from Chamber: Bank of England's MPC Decision

Christian Spence, Research Manager at Greater Manchester Chamber of Commerce

Commenting on the Bank of England’s Monetary Policy Committee decision today, Christian Spence, Head of Business Intelligence at Greater Manchester Chamber of Commerce, said: "This months’ meeting of the Bank of England Monetary Policy Committee is the first at which the headline Labour Force Survey unemployment rate is below the 7% set in the forward guidance statement of August 2013.

"However, despite none of the three “breakout” clauses being breached, the updated forward guidance from February means the Bank has continued its loose monetary policy stance, leaving interest rates at their historic low of 0.5%. We believe this will remain the case for some time in order to further support the strengthening economic recovery.

"UK markets have fully priced-in the first rise in UK Bank Rate for spring 2015 with American markets expecting the first move from the Federal Reserve in late summer 2015. Despite strong growth in the UK, it will be difficult for the Bank of England to move in advance of the US Fed rate rise particularly when the European Central Bank is considering further monetary easing."