MercoPress. South Atlantic News Agency

UK interest rate remains unchanged: 3,75%

The Bank of England left interest rates unchanged at 3,75% during the December meeting of the Monetary Policy Committee but suggestions of an increase in the near future seem certain.

According to the MPC December minutes the Bank of England Deputy Governor Sir Andrew Large was alone in his call to raise interest rates. The remaining eight members including Governor Mervyn King were more inclined to adopt a "wait and see policy" after the November quarter point rise in UK rates.

"If the economy continues to evolve in line with the Committee's central projections, a further increase in the rate would be warranted at some point", says the minute.

Mr. Large is quoted saying a rate rise would be more likely to ensure the dampening effect on consumption growth and on the further accumulation of debt, and so would help to reduce the future vulnerability of the household sector to adverse economic shocks.

The November quarter point rise was the first upward move in UK interests for nearly two years.