MercoPress. South Atlantic News Agency

Bank of England leaves rates unchanged at 4,5%

The Bank of England left Thursday interest rates unchanged at 4,5% for the third month running as was anticipated by financial experts who nevertheless are divided as to the future cost of money in the UK.

However British business leaders and retailers were not satisfied since a cut was expected to give manufacturers a boost.

"British business is disappointed that the Bank of England felt unable to act more boldly to counter the worsening economic circumstances and the sharp slowdown in the pace of economic activity" said the British Chamber of Commerce Director general David Frost. Official figures last week showed that manufacturing output went into reverse in September falling by 0.3% from a month earlier. Retail sales also dropped for the seventh consecutive month in October.

Most economists now believe that rates will be kept on hold until next year, but they are divided on when the Bank will make another move - and what direction it would take.

The Bank last shifted base rates August 4, moving them down a quarter of a point from 4,75% to stimulate economic growth.

However, other experts have warned that surging inflation and "increasingly hawkish" updates from the Monetary Policy Committee have seen opinion move toward the belief that rates could rise. MPC latest inflation and output projections are scheduled to be published next Wednesday November 16.