6 October 2005
The Bank of England's Monetary Policy Committee (MPC) today voted to maintain the Bank's repo interest rate at 4.5 per cent, making any further cuts to interest rates on loans unlikely.
Mehrdad Yousefi of Alliance & Leicester said: "The MPC's decision today to maintain rates was widely expected. Recent economic data has highlighted a lower economic growth rate than forecast in the March Budget, partly due to higher oil prices and lower consumer confidence.
Duncan Pownall, manager at Bradford & Bingley, added: "After a unanimous vote to hold last month, it was widely expected that the MPC would again keep base rate unchanged at 4.5 per cent, despite repeated calls for a cut from the manufacturing and retail sectors.
"There is still a wide range of opinion on the prospects for interest rates but we believe it is likely that base rate will remain on hold for the rest of the year unless there is very firm evidence of further weakening in the economy."
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