Philip Smeaton, chief investment officer at Sanlam UK, said: “A wave of weak data points washed over any chance of the MPC raising rates today. As Brexit looms on the horizon the UK economy is growing slower than global peers, with no acceleration in sight. While still in positive ground, the slight moderation of growth would have been hard news to swallow amongst the bulls of the MPC, and given inflation has fallen closer to the Bank of England’s 2% target, the pressure to raise rates has been eased.”
“The consumer has used recent real wage gains to bolster household finances instead of splurging on the high street. The MPC will have been concerned what impact a rate rise may have on the high levels of consumer borrowing – a key element of the UK economy.”
