09.10.2003

Bank of England to leave base rates untouched

The Bank of England's Monetary Policy Committee has announced that it will hold its benchmark rate at 3.5 per cent, the lowest level since January 1955.

The benchmark rate is the one that the bank charges to commercial lenders. The bank last changed the rate in July of this year when they cut it from 3.75 per cent.

There were concerns that a strengthening economy might cause them to lift the rate this month but weaker August manufacturing figures prompted the committee to hold the 3.5 per cent rate in order to maintain stability. The Bank today declined to comment on its reasons for its decision.