Thursday meeting of Bank of England’s Monetary Policy Committee took place with few fireworks and quite a dovish outlook for the UK economy. The result of the meeting found the growth rate for the economy being lowered from 2.8% to 2.7% as fundamental factors did not support the estimated growth rate. Also, a vote for the increase in base rate repeated month to month as one supporter of an increase in base rate remained. The vote for an increase was placed by Ian McCafferty, just as last month.

Some economy experts believed support for an increase would recruit another member this month, but did not. Kristin Forbes or Martin Weale was the possible candidate to make it an 7-2 vote instead of the 8-1 result which took place.

For now, the base rate will remain at the historic low of 0.5%. The future increase of the rate remains undecided, especially with the inflation remaining at its current level of -0.1%.

Low commodity prices and the positive movement in value of sterling will continue to be critical factors in the decision for an increase in base rate.

The MPC meeting minutes included a comment on sterling and its influence on inflation. It said: “Although sterling had depreciated a little in recent months, the relatively high level of the exchange rate meant that lower import prices were still pulling down on CPI inflation.”

Inflation rate will likely tip the scales towards an increase in the base rate. Currently the MPC sees the inflation rate exceeding the goal rate of 2.0% within in two years’ time.