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Bank of England policymakers are expected to keep interest rates on hold today despite mounting pressure for back-to-back cuts.
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Re: Bank Of England Decision On Interest Rates Later Today
Will Bank Cut Interest Rates Today?
Bank of England policymakers are expected to keep interest rates on hold today despite mounting pressure for back-to-back cut.
Calls for a futher reduction in the base rate of interest have grow after a raft of poor economic indicators.
It currently stands at 5.0% after last month's 0.25% cut.
Data earlier this week revealed that growth of activity in the services sector slowed to its lowest level since March 2003.
Just a day later, figures showed a shock 0.5% fall in manufacturing output in March.
On top of this showed house price growth turned negative during April for the first time since February 1996.
UK house prices are now 0.9% lower than they were in April 2007, according to a survey by the Halifax.
David Kern, economic adviser to the British Chambers of Commerce, urged the bank iof England's Monetary Policy Committee to reduce the cost of borrowing immediately.
Food prices have been rising
He said: "A small cut in interest rates, to 4.75%, would alleviate stresses in vulnerable areas of the economy and strengthen business confidence," he said.
But with inflationary pressures growing, economists predict that the Bank may hold fire until next month.
While the Consumer Prices Index (CPI) remained steady at 2.5% in March, petrol costs have continued to rise.
Consumers have also been hit with rising energy and food bills, which threaten to push inflation higher.
Figures yesterday from the British Retail Consortium and Neilsen showed that the cost of food had risen by an inflation-busting 4.7% year-on-year last month.
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Interest rates held at 5%
The Bank of England today held interest rates steady as it decided that inflationary risks were too great to allow it to cut borrowing costs
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Should the Bank of England have cut rates today?
The Bank held rates - but was this the right decision?
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Bank Of England Decision On Interest Rates
Bank of England policymakers have decided to keep interest rates on hold today despite mounting pressure for back-to-back cuts.
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Interest rates: what the economists say
Steve Radley, chief economist at EEF, said: "The economy has been through a series of shocks since the credit crisis hit last summer and the Bank has been right so far in responding with a measured approach on rates. However, despite concerns on inflation, further cuts to interest rates are needed to prevent the economy from drifting towards recession."
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Bank Of England Policymakers Keep Interest Rates On Hold
Bank of England policymakers have decided to keep interest rates at 5.0% despite mounting pressure for back-to-back cuts.
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