The Bank of England today maintained interest rates at 5.75% calming, at least for the time being, fears of yet another increase.
After raising rates by a quarter-point last month, the fifth rise in just under a year, policymakers had been concerned the Monetary Policy Committee (MPC) would keep on voting it up.
However, some experts still fear the MPC will increase the base rate to 6% before the end of the year. The Committee voted 6-3 to raise rates last month.
Despite falling back to 2.4% last month, inflation still remains well above the government's 2% target.
Retail groups have urged the Bank to keep rates at a steady level following the recent spate of rises.
“There is simply no case for another increase in interest rates,” Kevin Hawkins, director of the British Retail Consortium, told reporters.
“Retailers need the Bank of England to pause for breath, not pile more pressure onto consumers.”
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