05-06-2008
No change for interest rates today
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Interest rates have remained unchanged once again after the Bank of England's monetary policy committee (MPC) meeting today.
According to reports, the move met existing expectations among economists that the MPC would announce that interest rates are to remain on hold at five per cent - inflation is believed to be a factor in the MPC's decision.
Presently, Bank of England figures show inflation at a rate of three per cent.
"It was difficult to envisage anything other than no change. After last month's Inflation Report warning, a rate cut is pretty unthinkable as the CPI heads towards four per cent," said Andrew Smith, an economist at KPMG.
"There is some speculation that the Bank may even raise interest rates to combat inflation risks."
Presently, the Bank of England operates with an interest rate target of two per cent.