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Interest rates frozen at 4.75%

14 January 2005
The Bank of England has announced that it will hold interest rates at 4.75 per cent for January.

This is the fifth consecutive month that the Bank's interest rate-setting Monetary Policy Committee has decided to keep rates on hold.

The rates freeze surprised few commentators.

Yesterday 105 of the 106 economists asked by the Reuters, AFX and Bloomberg news agencies accurately predicted interest rates would stay at 4.75 per cent.

David Frost, director general of the British Chambers of Commerce (BCC), praised the decision, but added that should the economic situation change the Bank would be quick to react.

"Today's no change decision is correct. But, if there are clear signs that the economy slows, the MPC should be ready to take quick corrective action and cut rates," he said.

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