UK Interest Rates Remain Unchanged At 4.5%
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- UK Interest Rates Remain Unchanged At 4.5%
The Bank of england’s December meeting has concluded that the UK base rate of interest will be kept at 4.5%, a decision that marks four months in a row where the interest rate has remained unchanged.
The last change in UK interest rates was in August 2005 when the Bank of England trimmed them 0.25% down to 4.5% in order to boost lagging consumer spending. However, with UK stores facing the toughest retail outlook in years the drop in interest rates may not have been enough to reignite consumer confidence. City economists now expect the Bank of England to wait until Christmas retail numbers are released before deciding on any changes to the interest rate.
“Today’s MPC decision to leave interest rates unchanged at 4.5% was widely expected by the financial markets. But British business is disappointed that the MPC felt unable to take decisive action to counter the worsening economic situation,” stated David Frost, director general of the British Chambers of Commerce.