5 May 2006
The Bank of England's Monetary Policy Committee (MPC) has once again decided to keep interest rates at 4.5%.
It is the ninth consecutive month that the rate has remained unchanged.
Industry experts are divided over which way a future change in the rate should go.
"It's true that the economy is showing more signs of recovery, with a strengthening manufacturing sector and economic growth that is firmly in line with the long run average rate," said Trevor Williams, chief economist for Lloyds TSB Financial Markets.
"However - on the flip side - there is no escaping the fact that inflation is still below its two per cent target, that consumer spending still seems fragile and that monthly unemployment continues to rise.
"In short, there are arguments that could justify a rise or a cut, but no overwhelming case for either. And that's why the MPC decided to leave rates untouched this time around," he added.
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