The Bank of England was unanimous in holding the base rate at 0.5% for the second month in a row.
The Bank of England was unanimous in holding the base rate at 0.5% for the second month in a row.
The Monetary Policy Committee also voted to maintain the quantitative easing programme at £375bn.
Ian McCafferty voted for a rate rise from August 2015 to January 2016 but followed the rest of the MPC in voting to hold rates last month and this month again.
Yesterday in the 2016 Budget announcement Chancellor George Osborne reiterated that “the outlook for the global economy is weak – it makes for a dangerous cocktail of risks”.
The Monetary Policy Committee raised concerns over “increased uncertainty” surrounding the UK’s membership of the European Union, while it was "watchful" that low inflation could result in sluggish wages.
The committee agreed that the base rate should rise more gradually and at a lower level than in recent cycles.
On the upside it said the UK’s private domestic demand “remains solid” while a tighter labour market and rising productivity should support incomes and consumption.
Consumer confidence also remains above historic levels, the MPC said.
