The Monetary Policy Committee (MPC) have decided to hold interest rates at 0.5% despite expectations that they would be lowered.
With many people preparing for the announcement that the MPC would lower interest rates today, it came as a surprise that they chose to leave them on hold. As a result, the pound has spiked to its highest value since the EU Referendum result.
Dean Thorpe of Charles James Financial Planning said:
"The vote was 8 to 1 in favour of leaving rates level. We have to remember that the aim of the MPC is to keep inflation under control. They will have looked at the relevant economic numbers, including oil and fuel prices. These have risen recently and the cost of importing food will have also increased as a result of the fall in the value of the GBP currency. That might well be a concerning factor about inflation"