No change for interest rates

Posted on 10 January 2008 by Charcol

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The Bank of England has decided to keep interest rates on hold today, leaving the Bank rate at 5.5%.

The news will be come as a disappointment to many borrowers, after widespread speculation that the Bank was on the verge of cutting rates for the second month in a row.

However, concerns over the effect of rising oil and food prices on the rate of inflation seem have won out over any move to ease pressure on consumer spending.

Economist Howard Archer of Global Insight said that the vote on whether to change the interest rate was likely to have been "extremely close". Many analysts now expect a rate reduction of at least one quarter of a point in February.

Last month's cut in the central Bank rate was the first since August 2005, and had been preceded by five successive rises.

Details of the Bank's decision will be revealed when the minutes of the Monetary Policy Committee are published on 23 January.

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