Duncan Pownall, mortgage development manager for Bradford & Bingley commented: "It is no surprise that today's MPC meeting has resulted in a 'no change' decision. Even though the MPC cut base rate last month, only 5 out of the 9 policymakers excluding Mervyn King - voted for the reduction. Indeed with the jump in the inflation rate, rising oil prices and signs of modest improvement in the retail picture the MPC was unlikely to have considered any other course of action.
"While many continue to cry out for another rate cut to revitalise certain sectors of the UK economy, most notably the subdued high street, it is likely that, for the time being, their pleas will fall on deaf ears.
Currently there is a wide range of opinion on the prospects for interest rates, reflected in the rare division within the MPC, but we believe it is likely that base rate will remain on hold for the rest of the year unless there is a dramatic downturn in housing and retail sales."
