Interest rates left unchanged at 4.5%

Interest rates left unchanged at 4.5%

No change in cost of borrowing

Despite pressure to lower interest rates, the Bank of England has left them
unchanged for the sixth month running. The Bank’s Monetary Policy Committee has
not changed the rate since August last year.

Some analysts are predicting the 4.5% rate will remain unchanged for the
entire year as economic growth comes back towards the trend rate, The
Guardian
reported.

Other factors in the decision not to drop the rate was the modest improvement
in growth in the fourth quarter of 2005 and the fact that earnings data from the
all-important January pay round is not available until March.

Kevin Hawkins, the director-general of the British Retail Consortium, said:
‘After the pre-Christmas upturn, we are now back to the reality of a tough,
discount-driven retail market. The message from every sector of our industry is
the same. The squeeze on consumer spending continues unabated. The economy badly
needs a cut in interest rates.’

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource