Philip Shaw View Quotations

Our view is that base rates will remain on hold for the rest of the year, but that if there were to be a move, it would be down.

Our view continues to be that unless the economy veers sharply from its present course one way or the other, base rates will remain at 4.5 percent for the rest of the year.

This underpins our view that interest rates will have to come down again although the MPC caution on inflation suggests that's not going to happen until early next year.

Although it is clear the Bank is planning to keep rates on hold for now, our view is the MPC is still too optimistic on growth.