Bank of England holds interest rates in November
Published On 8 November 2007
The Bank of England's Monetary Policy Committee (MPC) has decided to keep interest rates unchanged this month.Rates will stick at 5.75 per cent for November after the MPC opted to wait to see what would happen to global markets before making a decision about whether to alter the interest rate.
Commenting on the decision, Trevor Williams, chief economist Lloyds TSB Corporate Markets, said: "Although it is true that economic growth may have peaked in the last quarter and is slowing in the current one, there is still some way to go before the MPC would need to wield the knife on base rates.
"And with money supply still growing, strong labour market conditions and continuing robust economic growth, today was clearly not the day for a cut.
"Equally, with early signs that the economy is set to weaken in 2008 and price inflation still comfortably below target, the Bank was never really likely to raise rates."
Mr Williams said that it was likely that the Bank would decide to lower interest rates in the future, but that such a move was not likely until "February at the earliest".
Since the beginning of 2007, the MPC has increased interest rates three times.
