Brent Broadbent, deputy governor of the Bank of England, said keeping interest rates unchanged at yesterday's meeting was straightforward decision, as it was logical to wait and see whether economic weakness during the first quarter was temporary.
The bank said yesterday it would look for signs in the coming months that the economy picking up before hike rates again, and Mark Carney, governor of the Bank of England, said it could be before the end of the year if things went well.
Two of the nine members of MPC voted in favor of rate hike to 0.75%. The markets were significantly pricing in the rate hike in May, but these expectations faded as the economy slowed in the first quarter.
Broadbent said in his remarks today that the Bank of England's February announcement that interest rates may need to rise faster and sooner than expected was clearly conditioned by economic growth that is in line with the Bank of England's expectations.
