The Bank of England is widely expected to hold its interest rate at 3.75% today, even as inflation has moved further from its 2% target. The central bank will also reveal its latest decision regarding its bond-selling programme.
The decision comes amidst a weak labour market, characterised by falling payrolled employment and negative real wage growth. Job vacancies are also at a multi-year low, according to Kathleen Brooks, research director at XTB.
While some members of the Monetary Policy Committee might vote for a rate increase, they are likely to be outvoted. The Bank faces the challenge of controlling inflation while consumers are reportedly struggling.