The Bank of England MPC has announced that base rate will remain at 0.5% -  at least for one more month.  Higher than expected inflation figures last month and a number of indicators suggesting that the economy was beginning to recover more strongly had pushed the case for rate rises, but events in the last few days have suggested that the economy may not be able to stomach a rise just yet!

A combination of a number of downbeat reports from high street retailers, the events in Portugal over the last few days and the continued pressures that this has shown on the EU along with a United Nations report that global food prices (a major driver of inflation) have fallen back from their record highs may have helped allay the fears of the strongest proponents of a rate rise within the MPC. However no-one can expect that this will continue indefinitely and there will come a time, probably in the next couple of months, when an upward shift in rates becomes inevitable.