Interest rates remain at 4.5%

The prime lending rate will remain at 4.5% for the ninth month in a row
following the latest meeting of the Bank’s Monetary Policy Committee (MPC).

The move was widely expected by analysts who still expect an increase at some
point soon on the back of a strong UK housing market and manufacturing showing
signs of recovery.

At the MPC meeting, the vote was 7-1 in favour of keeping rates at 4.5%, with
the exception of Stephen Nickell, professor of economics at the London School of
Economics, who voted for a rate cut.

Roger Bootle, economic adviser to Deloitte, said the rate decision would
‘prompt most people to think that the next move in interest rates will be
upwards’, but also said there was still a chance of a cut.

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