9
Nov
Interest rate held at 5.75%
The Bank of England has opted to freeze the base rate of interest
for the fourth successive month - stymieing hopes that homeowners
would be handed a financial fillip.
The Bank's monetary policy committee (MPC) held the rate at 5.75
per cent - a move widely predicted by economists.
However, a cut is expected however within the next few months, as
the impact of the credit crunch deepens and the Bank moves to
relieve pressure on banks.
Trevor Williams of Lloyds TSB said: "Although it is true that
economic growth may have peaked in the last quarter and is slowing
in the current one, there is still some way to go before the MPC
would need to wield the knife on base rates.
"And with money supply still growing, strong labour market
conditions and continuing robust economic growth, today was clearly
not the day for a cut. Equally, with early signs that the economy
is set to weaken in 2008 and price inflation still comfortably
below target, the Bank was never really likely to raise
rates.
He added: "The next move will almost certainly be down, but it's
safe to say there won't be any change until February at the
earliest."
