Bank of England holds UK interest rates at 5%

05 June 2008 12:00  [Source: ICIS news]

LONDON (ICIS news)--The Bank of England left UK interest rates on hold at 5% on Thursday, rejecting calls for a cut despite falling house prices and signs of economic slowdown.

 

The bank decided the problem of rising inflation was priority as it resisted calls for relief to households coping with soaring living costs.

 

The Bank of England has now held the base rate for two consecutive months, following three cuts between December and April.

 

The Organisation of Economic Cooperation and Development (OECD) warned that the UK economy was heading for a significant downturn, putting government spending plans in danger. It predicted UK growth would slow to 1.8% this year and to 1.4% in 2009.

By: Mark Watts
+44 20 8652 3214

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