Bank of England keeps UK interest rate at 5%
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- Published:Thursday, September 4th, 2008
For the fifth month in a row, the Bank of England’s Monetary Policy Committee (MPC) has voted to keep interest rates on hold at 5.0%.
Against a backdrop of rising inflation, a sluggish house market and a potential recession, the Banks decision was expected by many financial analysts for this month. However, the gloom in the economy is leading many to predict a cut in interest rates before the end of the year.
When the MPC met in July, only one member, David Blanchflower, voted for a rate cut. He argues that rate cuts are needed to support the economy and prevent a sharp jump in unemployment.
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