| Interest rates remain unchanged |
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| Thursday, 10 July 2008 | |
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The Bank of England kept UK interest rates at 5% today, after balancing the threat of recession against inflationary pressures on the economy. The move - or rather lack of it - had been widely predicted. A 7% surge in food prices in June, announced yesterday by the British Retail Consortium, sent annual retail inflation to 2.5%. But the central bank also had to consider Tuesday's report from the British Chambers of Commerce, which referred to Britain's economic situation as "grim" and "ominous". In the end it chose to do nothing. |
