Commenting on today’s decision by the Bank of England Monetary Policy Committee, Lee Hopley, Chief Economist at EEF, the manufacturers’ organisation, said:
“Clearly not the time for surprises, the MPC voted as a majority of its members has been signalling. The decision will, no doubt be hailed as historic, but for industry that’s not because of the impact manufacturers might expect this one rise to have on demand conditions but what it might mean for the path of monetary policy in the next few years.
“With the UK inflation and growth outlook still subject to a high degree of uncertainty this was not a clear cut decision. The indication that the hiking cycle will be gradual and limited provides partial reassurance, but needs to be balanced with on-going clarity on how the evolution of data will determine the timing and pace of future changes.
“This decision was finely balanced and the next one should come only with the emergence of clear evidence of new domestic inflationary pressures or indeed a ramping up of downside risks to the growth and inflation outlook.”