Commenting on the latest Bank Rate out today, Andrew Sentance, senior economic adviser at PwC, said:
"This latest decision from the MPC is not a surprise, even though there are some very strong arguments for a rate rise which have been in place for some time - rising inflation, sterling weakness, falling unemployment and a continued build-up in consumer borrowing.
"The challenge facing the MPC is to deliver a gradual increase in interest rates which can be absorbed by the economy. By continually delaying the first move in this direction, there is an increasing risk that when interest rates do start to rise, it will take consumers and borrowers by surprise - and therefore create a bigger shock to the economy than it needs to be."
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