Interest rates on hold by Finance News Bulletin

Published: 24/11/07

The store of England had decided for the third month running to keep interest rates at 45 per centThe announcement came as little shock to analysts who mostly predicted that the financial Policy Committee (MPC) would stick by the rate for one month more But it came to the chagrin of suffering retailers, some of whom have been experiencing the worst sales for years

Many within the manufacturing wanted the MPC to cut tax to encourage consumer spending The British Chamber of trade (BCC) said it was upset that the MPC was not willing to make "bold moves" to effortlessness "worsening economic conditions""While we be grateful for that the MPC faces serious uncertainties, waiting too extended before taking corrective action also entails major risks," said David Frost, manager general of the BCC "The economic state of affairs has worsened considerably, and business confidence is weak

""It is therefore seriously important that the MPC should maintain a flexible approach, and should stand ready to counter the pointed slowdown in the pace of economic action," he addedThe CBI reacted more absolutely to the news Ian McCafferty, the body's chief economic consultant, said: "While conditions remain difficult in the sell and manufacturing sectors, there are some signs of a recovery in the housing marketplace"It said that there were "potential risks" such as price rises and growth, which "the Bank must remain alert to"

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