The Bank of England’s monetary policy committee left interest rates unchanged at 5 per cent as expected on Thursday, with its room for manoeuvre severely limited by intense inflationary pressures and bleak prospects for economic growth.

UK Daily View: Bank’s job gets tougher

Chris Giles, economics editor, on difficult choices for the MPC

Even the most fervent proponents of rate cuts were resigned to rates staying on hold after consumer price inflation climbed to 3 per cent last month, a full percentage point above target, leading markets to price out any chance of near-term monetary easing.