MercoPress. South Atlantic News Agency

UK interest rates on hold at 4.5%

The Bank of England decided Thursday to leave interest rates on hold at 4.5% in spite of some expectations of a possible cut.
The last time UK rates were cut was in August 2005 when they fell a quarter of a point.

The Monetary Policy Committee, MPC, is believed to have based its decision on signs of current mixed economic data. But if further weakness becomes evident economists forecast that the Bank of England is ready to cut rates, later this year, "possibly in the spring".

"We understand that the MPC faces difficult choices. Waiting too long before taking corrective action could, however, be dangerous" said David Frost, director general of the British Chambers of Commerce (BCC).

"There is a clear risk that the upward trend in unemployment would accelerate. We urge the MPC to consider early action", he added.

Economists believe the Bank is waiting for details of the latest revised inflation and growth forecasts, due to be published next week.