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Bank to leave rates on hold

08 December 2004
Interest rates will remain at 4.75 per cent after tomorrow's meeting of the Bank of England's monetary policy committee, analysts have predicted.

All 45 of the economists polled by Reuters predicted a rates freeze, as did all 40 of the analysts asked by Bloomberg.

Royal Bank of Scotland group chief economist Jeremy Peat said: "I am as close to certain as it is possible to be in these matters that the UK [base] rate will be left on hold at 4.75 per cent at next week's meeting of the Monetary Policy Committee.

"The big question is what happens next ... it is certainly a distinct possibility that [base] rate is now at its peak. However [if certain data does not alter] one further rate hike around August next year looks likely. That would take rates to a peak of just five per cent."

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