Thursday, August 7, 2008
BOE base rate held by MPC @ 5%
The Bank of England has kept interest rates on hold at 5% as it struggles to deal with a slowing economy and spiralling inflation. Many reports have shown the economy heading for a significant slowdown or even a recession. But the Monetary Policy Committee's primary goal is to keep inflation at 2% and it currently stands at 3.8%. Although the bulk of members voted to hold rates last month, one supported a cut, while another backed an increase.