2015 rate rise still likely despite oil price plunge

Heightened uncertainty regarding how weak inflation will be in 2015 and signs that the recovery has become less broad-based are likely to mean that the MPC keeps interest rates on hold at January’s meeting and throughout the first half of 2015. But signs that wage growth is starting to strengthen and labour market slack is continuing to decline suggest that a move to raise Bank Rate before the end of this year remains on the cards.