The decision had been expected, but many business groups had hoped that the MPC would cut rates by a further 0.25%. The British Chamber of Commerce (BCC) admitted their disappointment:

“We are aware that the MPC cannot disregard the inflationary risks arising from surging food and energy prices, but countering the acute threats to growth must be given a greater priority in the immediate future. Plunging consumer confidence, falling house prices, and worsening pressures on bank capital are a toxic mix that must be countered by a more pro-active policy stance," stated David Kern, Economic Adviser to the BCC.

With the threat of inflation, and rising prices for fuel and food, the MPC's decision has balanced the need to stimulate a slowing economy and minimising the risk of further inflation.