The Bank of England's Monetary Policy Committee kept UK base rates on hold at 5% at today's midday policy setting meeting, following last month's cut.
A break from rate-cutting had been widely expected as inflationary pressures have not yet abated, despite widespread gloom about the UK and US economies. The housing lobby had argued for a cut, with the Royal Institution of Chartered Surveyors expressing disappointment at the MPC’s inaction. However, the move was cautiously welcomed in other quarters. “The positive message to emerge from the no-change decision is that the MPC does not judge the UK economy to be in a parlous condition that requires the first back-to-back reduction in interest rates since 2003,” said Edward Menashy, chief ec...
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