monetary policy committee

Annual growth of 0.6% weakest for more than seven years

The British Chambers of Commerce (BCC) has warned the government against "prematurely" raising interest rates as its latest quarterly economic survey suggested challenges remain for the UK's recovery.

A hike in the base rate of as little as 0.25% would have a much greater impact on the disposable incomes of highly indebted consumers, potentially threatening the UK's recovery, Neil Woodford has said.

Britain's recovery has become entrenched and the Bank of England should start to raise interest rates in the coming months to reflect the stronger economy, according to one of its most dovish policymakers.

Monetary Policy Committee members predict any rise in the Bank base rate, currently at 0.5%, which occurs over the next two to three years will be gradual.

The Bank of England has again moved to temper expectations of an early rate rise, despite the UK unemployment rate dropping to close to the crucial 7% mark this morning.

The Bank of England's Monetary Policy Committee (MPC) should hold off on raising interest rates even though its stated threshold for doing so - a fall in the unemployment rate to 7% - is in sight, according to a report.

Monetary Policy Committee minutes reveal unwillingness to raise interest rates after unemployment falls

Charlie Bean, the deputy governor of the Bank of England (BoE), has said the Bank has sent a "clear signal" it won't increase interest rates anytime soon as he expressed some surprise at investors' reaction to its position.