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Interest rates frozen for tenth month in a row

13 June 2005
The Bank of England has voted to freeze interest rates at 4.75 per cent in June for the tenth month in a row.

All 85 economists quizzed by Reuters and Bloomberg correctly predicted the move by the Monetary Policy Committee (MPC).

However, financial experts are expecting the current interest rates freeze to end soon as economic growth faces a worsening outlook and consumer confidence dips.

"The bet in the market is that rates will be heading down by the year-end and could stand at 4.25 per cent by March," Simon Rubinsohn, chief economist at investment management firm Gerrard, stated.

The decision brings good news for mortgage holders and loan borrowers, but disappointed retailers. The British Retail Consortium (BRC) had called for a drop in interest rates amid the threat of a recession in the industry.

The MPC has voted to lower interest rates just once in the last 28 months.

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