Interest rates on hold at 5.75%

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by Kay Murchie

As many analysts predicted, The Bank of England’s Monetary Policy Committee has kept UK interest rates on hold at 5.75% for the fourth consecutive month.

Interest rates have remained the same now since July when they increased from 5.5% to 5.75%.

There has been significant pressure on the Bank of England to cut rates over the last few weeks after the effects of 5 interest rate hikes since summer 2006 and the squeeze on businesses and homeowners has taken its toll.

Many issues have been taken into consideration when keeping rates on hold such as record oil prices at $98 a barrel. In addition, it is believed inflation risks have undoubtedly been a major reason.

Inflation has taken a backseat recently as the Bank of England has concentrated on the knock-on effects from the turbulence in the credit markets.