Bank right to hold on rates - EEF

Evidence from the labour market and factory gate prices suggests that there is no immediate inflation threat that requires further rate rises. EEF’s own survey released earlier this week showed a fall in the number of companies planning to raise prices. In addition, the uncertainty created by the turbulence in financial markets suggests that the Bank should wait for more evidence on its impact before making its next move.

Commenting, Stephen Radley, Chief Economist, said:

"The UK economy continues to show that it can combine healthy growth with low inflation. We therefore believe that the Bank can keep rates where they are for some time."