The MPC’s decision to stand pat today – marking the 6th anniversary of interest rates at their record low of 0.5% – looks set to repeated over the next few months while inflation hovers near zero. But by the summer, it should be clear that the UK’s deflation is neither pernicious nor long lasting. So, with conditions in the labour market tightening fast, a 7th anniversary of 0.5% rates may not be reached.
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