Bank keeps rate unchanged at 5.5%

The Bank of England’s Monetary Policy Committee voted to maintain the official bank rate paid on commercial bank reserves at 5.5% last week.

The move comes despite the market pricing in a 60% chance of a rate cut. The Bank last cut its rates in December, by a quarter point, and economists predict that it will lower rates in February. Sterling initially strengthened following the announcement but quickly fell back against the dollar and the euro.