In contrast to the US cutting interest rates yesterday, today the Bank of England have chosen to keep interest rates where they are at 5%. Much of the UK remains on a solid economic footing with a good jobs market which are all calls not to cut rates because there is less of a recessionary narrative to combat. Second to that, the UK remains in a fight against inflation which seems, in some areas to be rising once again. Given the possibility of a resurgent inflation narrative it makes sense that the UK held off cutting interest rates further at this meeting. UK Bonds sold off on the news which again was not surprising given that market had been rallying in the last few days on expectations that the UK would have cut their rate today.