Bank of England interest rate vote on a knife edge after shock inflation fall, economists say

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Bank of England interest rate vote on a knife edge after shock inflation fall, economists say
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The base rate currently sit at 5.25 per cent and most experts expected it to rise further before today's inflation figure was released

Charles Goodhart, a former member of the Bank’s Monetary Policy Committee , which sets rates, said the data put the decision “on a knife edge” and toldKen Wattret, vice-president of global economics at S&P Global Market Intelligence, said markets now expected a “50-50” chance of another 0.25 percentage point hike tomorrow.

Michael Saunders, another former MPC member, and now senior advisor at Oxford Economics, said he expected the MPC would “more likely” leave rates on hold than rise again, but that their language would probably “still keep the door open” for a rate hike later this year, if it was justified.

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