| Interest rate on hold |
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| Thursday, 04 September 2008 | |
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The Bank of England has kept interest rates on hold. The rate remains 5%.
The decision was taken despite growing concern at the slowdown in the economy and the virtual collapse of the housing market. However, the Bank continues to see the fight against inflation as its main priority. The widely-expected decision by the Monetary Policy Committee (MPC) comes with inflation more than double its 2% target at 4.4% - and set to hit 5% in the coming months. Chancellor Alistair Darling's gloomy comments on the UK's prospects and a report by the OECD suggesting the UK would have a recession has helped send the pound plunging against the dollar and the euro, adding to inflation pressure. Rates have now been on hold for five months. |