At its meeting today, the Monetary Policy Committee (MPC) decided to maintain the Bank Rate at 10 percent. While the underlying trend in inflation remains favourable, domestic inflation rose to 6.1 percent in January, 2010, outside the top end of the 3 – 6 percent objective range. However, despite the potential for cost pressures to emerge in the short term, notably an impending increase in value added tax (VAT), inflation is expected to move back within the objective range over the medium term time frame that is relevant for monetary policy. However, the Bank remains committed to responding appropriately to all economic and financial developments so as to maintain price stability in the medium term, which contributes to sustainable economic growth. For more details, see press release.