Interest rates remain unchanged at five per cent

News Article - Friday, May 09, 2008

filed under: Regulatory

The Bank of England has announced that UK interest rates will remain on hold at five per cent this month.

Members of the bank's monetary policy committee (MPC) chose to maintain the current base rate of interest in light of rising inflation.

However, accounts software customers are advised that analysts are forecasting a quarter point cut in the cost of borrowing at the MPC's June meeting to 4.75 per cent.

Slowing economic growth, a dip in house prices and a fall in consumer spending have prompted calls for the Bank of England to cut interest rates further.

The MPC has made three cuts in the base rate over the past six months in the face of an economic slowdown and is facing pressure from businesses to do more to improve confidence.

The global credit crunch has dramatically affected lending markets in recent months and businesses can invest in accounts software in order to manage their finances more effectively.

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