The Monetary Policy Committee today again decided to keep rates on hold at 0.5% marking 18 months since rates fell to this record low level.

While many of us still cannot believe where the time has gone, recent reports suggest that a growing number of people are beginning to worry about the harm that rising interest rates will cause as we inch ever closer to that time.

It will be interesting to see if chief Hawk Andrew Sentance has managed to persuade any other members of the committee to join him in calling for an early rate rise, however as inflation eased slightly in the last inflation report I suspect the status quo to be preserved.

Whilst the fear of a double-dip recession has been growing in recent weeks and house prices are beginning to soften, inflation is still expected to remain above target for a while yet. The battle between those who believe early action on inflation is necessary now if interest rates are not to spiral over the coming years and those who still want to adopt the wait-and-see approach to maintain any semblance of a recovery is set to rage for a while yet.

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