Interest Rates On Hold - 15/09/04

The Bank of England (BOE) has decided to keep interest rates on hold at 4.75% for September, as widely predicted. The BOE has raised interest rates five times since last November, most recently in August, to cool the UK property market and consumer spending.

But recent data on house prices and borrowing showed the UK economy seemed to be slowing in response to the rises. The hold is good news for manufacturers and mortgage holders, but less welcome for those with savings accounts.

After Thursday's announcement Barclays said it expected interest rates to rise to 5.0% by the end of the year, while the Institute of Directors thinks they will peak at the same figure in early 2005.

Written By Simon Johnson
Xbridge Decision Finance

<< Back to news