The Building Cost Information Service (BCIS) is the leading provider of cost and carbon data to the UK built environment. Over 4,000 subscribing consultants, clients and contractors use BCIS products to control costs, manage budgets, mitigate risk and improve project performance. If you would like to speak with the team call us +44 0330 341 1000, email contactbcis@bcis.co.uk or fill in our demonstration form
Published: 21/03/2024
The Bank of England’s Monetary Policy Committee (MPC) has voted by a majority (8-1) to leave the base rate unchanged at 5.25% at its March meeting.
One member of the committee voted for the rate to be decreased to 5%.
While construction was singled out as having significantly contributed to monthly GDP rising by 0.2% in January – the highest level since September 2023 – the committee said key indicators of inflation persistence remain elevated. Material risks outlined include ongoing disruption to shipping in the Red Sea and conflict in the Middle East.
In setting out the context to the vote, the committee said it has ‘judged since last autumn that monetary policy needs to be restrictive for an extended period of time until the risk of inflation becoming embedded above the 2% target dissipates’.
Dr David Crosthwaite, Chief Economist at BCIS, said: ‘The widely anticipated hold in the base rate is no great surprise. However, to me this seems like a missed opportunity by the Bank of England to relax some of the restrictions on growth given that we are technically in a recession.
‘Economists are predicting a fall in June but that will probably be a reduction to 5%, which might be too little too late for an economy that’s looking increasingly fragile.’
The MPC will next meet on 9 May 2024.
To keep up to date with the latest industry news and insights from BCIS register for our newsletter here.
