Bank holds rates at 5.5pc

The decision was widely expected and it gives the MPC time to assess the impact of the latest series of rate rises. However, as price growth remains strong, an increase to 5.75pc is looming in the background according to the majority of analysts. John Postlethwaite, consultant at Punter Southall, said: “As interest rates in the Euro zone went up by 0.25pc this week it placed extra pressure on the Bank of England, and although the rates were held today it is widely expected they will rise again later in the year.” The rate in the UK has been raised four times since last August in an attemp...