22nd October 2014
The pound has fallen as the Bank of England’s Monetary Policy Committee (MPC) minutes revealed that the majority of members were against raising interest rates in their latest meeting.
MPC members voted 7-2 in favour of keeping interest rates on hold at their record low of 0.5%.
Following the publication of the minutes the pound fell half a cent against the dollar.
Chris Towner, managing director of FX advisory services at HiFX, said: “Let’s face facts – the economic crisis of 2008-2009 was so severe that the Bank of England is rightly very sensitive to holding back these better times and this will continue for some time to come.
“This has put sterling under some much needed pressure and will give UK exporters some breathing space for now. However the UK economy is one of the better placed economies and therefore the fact that sterling is on the back foot may not last for long.”
Calum Bennie, savings expert at Scottish Friendly, said: “Those who are already feeling stretched – homeowners in particular – need to consider what a rate rise might do to their disposable income and plan accordingly.
“Even a modest rise in interest rates could have a dramatic effect on mortgage debt. Any money that people can save over the coming months should be encouraged in order to provide families with some financial back up when the rise eventually happens.”