Bank of England Holds Interest Rate At 5.0%

The Bank of England today held interest rates at 5.0% despite pressure for a rate cut from businesses.

The monetary policy committee (MPC) voted for interest rates to stay the same even though there are alarming indications that the UK is heading for a recession and suffering rising costs of inflation.

Many sources believe the interest rate will not be cut until inflation levels are reduced.

The previous change in Bank Rate was a reduction of 0.25 percentage points to 5.0% on 10 April 2008.