Interest rates remain on hold

The MPC was able to meet despite the terrible events of this morning in the city. The decision will come as no surprise to many in the financial services industry. Earlier in the week BDO Stoy Hayward predicted the MPC would hold interest rates at 4.75% but that the MPC may well lower rates by 0.25% in August given the current predictions for economic growth during the latter half of the year. BDO said earlier in the week that domestic demand was likely to be weak throughout the remainder of 2005 as uncertainty over the housing market, interest rates and taxes keep consumers from makin...