Bank of England still wary over raising rates

Bank of England officials are wary of raising interest rates despite signs of stability in the UK recovery, meeting notes show.

The members of the Monetary Policy Committee voted to keep rates at 0.5% as expected. Agreeing that while “employment had continued to increase robustly…wage growth had been surprisingly weak”.

The committee said there may be a “modest slowing in output growth” in the second half of the year.

Wage growth excluding bonuses slowed to a record low 0.7% in the three months to May.

Mark Carney said last week that he did not know when interest rates would start to rise.

He said that the pace of rate rises would be gradual, depending on the strength of recovery.