5 November 2007
Borrowers of personal loans hoping for an interest rate cut from the Bank of England later this week seem likely to be disappointed.
Analysts are expecting rates to be held at 5.75% by the bank's Monetary Policy Committee (MPC), despite fears of a slowing economy triggered by the ongoing global credit crunch.
In response to the crisis - which was triggered by the meltdown of the US sub-prime mortgage sector earlier this summer - the Federal Reserve has slashed rates by a total of 0.75% so far.
Nevertheless, Chief Economist at Investec Philip Shaw told the Press Association that recent jumps in retail sales measured by the Office of National Statistics were a potential reason for keeping rates as they are.
"Recent figures have been stronger than expected, implying that if the economy is slowing down, it is doing so from a position of some strength," he said.
"We now believe that the solid momentum of the economy will probably persuade the MPC to keep rates on hold."
The rate decision will be made on Thursday.
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