04 November 2010 12:00 [Source: ICIS news]
LONDON (ICIS)--The Bank of England held UK interest rates at a record low of 0.5% on Thursday for the 20th consecutive month.
While interest rates remained unchanged this month, there has been growing disagreement among members of the Bank of England's Monetary Policy Committee (MPC) amid mixed data on the state of the
The Chartered Institute of Purchasing and Supply (CIPS) said in a recent survey of the manufacturing, construction and services sectors that there was a lower risk of a renewed downturn, and that indications of economic growth in the fourth quarter suggested the recovery would continue, albeit at a slower pace.
But total output is still around 10% lower than before the financial crisis. And the repercussions of the UK government’s spending cuts are yet to be seen.
The CBI said the pace of recovery was likely to be more sluggish in 2011 than previously forecast following measures announced in the country's emergency budget to deal with its deficit. Consumer spending is forecast to drop next year after January’s VAT rise and modest wage increases.
British unemployment is at 7.7% and the
The recession forced the bank's MPC into a series of interest rate cuts, which has seen rates fall from 5.5% in October 2008 to the current level, which was set in March 2009.
($1 = £0.62/€1 = £0.88)
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