Maike Currie, vice president of personal finance at PensionBee, said: “A hold was always the most likely outcome, reinforcing that the Bank of England won’t jerk the wheel every time inflation spikes – even with energy prices sky-rocketing.
“A resilient labour market continues to give policymakers some breathing room. With unemployment unexpectedly falling, wage pressures remain elevated, reducing the urgency for immediate rate cuts.
“However, the broader consumer picture is less robust than headline figures suggest. The Bank’s chief economist, Huw Pill, voted in favour of a rate rise, recognising the looser labour market but pointing out that the impact on energy and food prices remain a concern, and a modest hike could help mitigate risks to price stability given persistent inflationary pressures.
“Earlier figures showed UK retail sales have been propped up by fuel stockpiling and the ‘lipstick effect’, where households cut back on big-ticket purchases but continue spending on small, affordable treats – like coffee, beauty products or low-cost fashion – to lift their mood. It’s resilience, but a fragile kind.”
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