As global markets slow the Bank of England decides to not increase interest rates
The Monetary Policy Committee have decided to keep interest rates at the all time low of 0.5% in a vote of 8 to 1 agreeing. There are fears with failing oil prices, a slow down in china and stock market drop that the UK economy is vulnerable. The UK FTSE also had its worst start to the year compared to the last 16 years.
Inflation is expected to remain with the 2% target with oil prices dropping 40% since mid 2014 from around $110 a barrel to $30. It is thought the lower energy prices would help UK consumers and help spending. It was also noted that the rate of growth of pay had also slowed.
It is now expected that interest rates will not rise until 2017.