Bank of England: interest rates remain steady

Bank of England: interest rates remain steady

Story link: Bank of England: interest rates remain steady

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The Bank of England left the interest on borrowing at 4.75%, after poor retail sales over Christmas and a possible reverse in the housing market suggested a general slowdown of the UK economy.

A string of reports from the finance sector in December, not least the Council of Mortgage Lenders (CML), British Bankers Association (BBA) and Building Societies Association (BSA), all indicated that the housing market may well be reversing.

Afterwards, the British Retail Consortium (BRC) had reported the worst high-street retail sales for the Christmas period in ten years.

With a general slowdown in the UK economy looming, interest rate rises are unlikely. However, there is little chance of an immediate cut until the board of the Bank of England have had a proper chance to better analyze the effect on consumer spending and confidence, and also more properly gauge the needs of manufacturing.

With rumours still abounding of a possible snap general election being called in May, any moves in interest rates would also be politically sensitive.