SPF Private Clients thinks it likely that Base Rate to remain at 0.5% throughout 2012.
Pressure for the Bank to change its stance has eased, as inflation has fallen. The Bank judges that inflation will fall sharply during 2012 and could hit 3% during the first half of the year.
The MPC also announced that it is to maintain the size of the Asset Purchase Programme at £275bn. Although commentators suggest that this could be enhanced further, once the additional £75bn from last October’s increase has been utilised.