Weak growth forcing rethink
Bank of England expected to delay interest rate rise
Analysts say weak economic growth and falling inflation have prompted a shift in intentions among members of the Bank’s monetary policy committee.
A rise was seen as a done deal until recently and only a couple of weeks ago EY’s Item Club was predicting the nine-member rate-setting group to announce the first of four increases over the next two years.
However, the Bank’s governor, last week cautioned against an immediate rise.
Recent data has been a big factor, with a big decline in construction activity behind the slowing growth in the first quarter.
Purchasing managers’ figures for April were subdued for services, which includes banking to restaurants and property.