Bank of England urged to hold interest rates

BUSINESS has urged the Bank of England to keep interest rates on hold at 5% this week and be ready to cut them in the coming months to head off a recession. After a week of bleak economic news, pressure on the Bank's monetary policy committee (MPC), which meets this week, is intensifying. The outlook is more worrying than at any time in the Bank's 11 years of independence. "For the moment the Bank should keep rates on hold. The slowing economy and wage moderation should help to prevent inflation," said Steve Radley, chief economist at...

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