Interest rates left unchanged

The official borrowing rate has been left unchanged at 4.5% by the Bank of
England following a decision by the Bank’s Monetary Policy Committee (MPC).

The decision was widely anticipated although economist expect the next move
to be upwards, following concerns about rising inflation.

The Bank’s most recent quarterly inflation report warned that inflation could
overshoot its 2% target if base rates remained at 4.5%.

No reasons have been given for the decision but the minutes of the MPC
meeting will be revealed in two weeks time.

Lobbying group, the Confederation of British Industry, said it was relieved
that the Bank had left rates unchanged.

‘The economy is recovering from the doldrums of last autumn, raising some
fears of the prospect of a modest acceleration in inflation,’ said Ian
McCafferty, CBI chief economic adviser.

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