Analysts not surprised by rate freeze

Most agreed that the Committee remained somewhat cornered, unable to cut rates to boost the flagging economy, while inflationary pressures persist. Peter Hensman of Newton Investment Management summed it up: "The Bank of England left interest rates at 5pc as expected as it continues in its efforts to strike the right balance between combating the inflationary threat emanating from the strong increases in food and energy costs, with the strengthening indication that the UK economy has slowed sharply in recent months." Despite the weaker growth outlook, Hensman added that the minutes of ...