7 September 2006
The Bank of England has announced that interest rates will remain at 4.75% this month.
Following last month's decision by the monetary policy committee (MPC) to increase interest rates, the Bank decided to hold the rate this month.
The quarter point increase in August was the first rise in 12 months and came in response to greater inflationary pressures.
Howard Archer, chief UK and European economist at Global Insight, commented on today's decision to keep rates the same.
He said: "A second successive rise in interest rates was never likely today. While the odds are probably currently modestly in favour of another 0.25% interest rate hike in November, this is by no means a done deal.
"The interest rate hike in August was partly pre-emptive, and the Bank of England has indicated that it does not have a pre-determined timetable over the event and timing of any future interest hikes. Indeed, it has stressed that future interest rate movements will be driven by how the data pans out.
"We currently forecast a 0.25% hike to 5% in November, but we then expect interest rates to remain at that level for some considerable time."
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