No change for interest rates

09 June 2006
The Bank of England (BoE) has announced that it will not be changing interest rates this month.

The rates will stay at 4.5 per cent until the next meeting of the board to vote at the beginning of July.

Howard Archer, chief UK and European economist for Global Insight, commented on the announcement: "Unchanged interest rates were a certainty, and David Walton is likely to have been the only dissenter as he again voted for an immediate 25 basis point hike.

"Nevertheless, the outlook for monetary policy, even in the near term, is far from certain and the minutes of the meeting should make very interesting reading," he said.

Mr Archer said that he did not expect the BoE to change interest rates until the turn of the year at the earliest, claiming "there is a strong case for interest rates to remain unchanged…given significant uncertainties about the longer-term growth outlook".

The unchanged rate has remained steady for ten months now, since it was last dropped from 4.75 per cent on 4 August, 2005.

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