19 October 2005
Personal loan customers suffered a setback today with the news that the Bank of England's Monetary Policy Committee (MPC) did not even discuss the possibility of cutting interest rates as their meeting earlier in the month.
Minutes from the meeting showed an unexpected lack of discussion - even allowing for the fact that the decision to hold rates at 4.5 per cent held few surprises - regarding lower rates, leading analysts to suggest that cuts may not be on the agenda until, at the earliest, the turn of the year.
The possibility of a cut in November now seems slim, with the Bank's minutes showing their doubt that economic output is as low as official figures have suggested, whilst also underlining their fear that the current high oil prices are having little effect on inflation of wage settlements.
George Buckley, of Deutsche Bank, told Reuters: "I'm surprised they haven't talked about a rate cut at all. I think these minutes are fully consistent with them having to wait until next year."
The MPC voted unanimously, by nine to zero, to hold rates this month. Their decision relating to next month's rates is expected on November 10th.