The Monetary Policy Committee (MPC) voted unanimously to leave interest rates on hold in February and looks set to sit on its hands over the next few months as CPI inflation descends into negative territory. But by the summer, wage data should have reassured the MPC that near-zero inflation will not be long lasting. And by then, the labour market is likely to have tightened even further. So we think that a rise in Bank Rate before the end of this year is still on the table.
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