Even with more evidence of inflation control earlier this week, the nine-member rate-setting committee remained united in their opinion that it was too soon to consider a reduction in rates.
The committee is especially concerned that rapid wage growth, which is currently well above the 6% inflation rate, could boost demand and increase inflationary pressures in the economy.
Although April’s inflation rate is predicted to drop below the target rate, primarily as a result of the recent fuel duty freeze and falling energy costs, bank projections indicate that the number will gradually rise once more.
Rate-setters seek a clearer picture of the future as the price of oil rises globally. Increased costs associated with a stoppage in shipping across the crucial Suez Canal transit are among the other worries.
