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| Version 1 | Version 2 |
|---|---|
| Bank votes to leave rates on hold | Bank votes to leave rates on hold |
| (30 minutes later) | |
| The Bank of England has left rates unchanged at 5.25%, after a surprise rise last month. | The Bank of England has left rates unchanged at 5.25%, after a surprise rise last month. |
| Business groups welcomed the decision, saying the Bank was right to wait and see the effect of January's rise. | Business groups welcomed the decision, saying the Bank was right to wait and see the effect of January's rise. |
| In January, the Bank increased rates from 5.0% to 5.25% in an attempt to curb inflation, which had hit an 11-year high of 3% the month before. | In January, the Bank increased rates from 5.0% to 5.25% in an attempt to curb inflation, which had hit an 11-year high of 3% the month before. |
| The news should offer relief to mortgage holders, as it will give some much-needed breathing space. | The news should offer relief to mortgage holders, as it will give some much-needed breathing space. |
| The Bank's decision had been widely expected by analysts, after the Bank acted last month to curb inflation. | The Bank's decision had been widely expected by analysts, after the Bank acted last month to curb inflation. |
| 'Wait and see' | 'Wait and see' |
| The Bank of England has increased interest rates on three occasions since last summer, by one quarter of a percentage point each time in August, November and January. | The Bank of England has increased interest rates on three occasions since last summer, by one quarter of a percentage point each time in August, November and January. |
| There is a very real risk that interest rates could go higher still Howard Archer, economist | |
| Manufacturers welcomed the news, with the EEF saying the Bank had been right to take a wait-and-see stance. | Manufacturers welcomed the news, with the EEF saying the Bank had been right to take a wait-and-see stance. |
| "The Bank is right to hold its fire until the smoke clears and the impact of the recent rises becomes clearer," said EEF chief economist Steve Radley. | "The Bank is right to hold its fire until the smoke clears and the impact of the recent rises becomes clearer," said EEF chief economist Steve Radley. |
| "Another rise so soon after the last risks spreading unnecessary alarm amongst business and the consumer." | "Another rise so soon after the last risks spreading unnecessary alarm amongst business and the consumer." |
| More rises? | More rises? |
| Global Insight chief economist Howard Archer suggested the Bank's decision could well have been a result of a close vote by the Monetary Policy Committee (MPC) and may prove to be only a "temporary reprieve". | Global Insight chief economist Howard Archer suggested the Bank's decision could well have been a result of a close vote by the Monetary Policy Committee (MPC) and may prove to be only a "temporary reprieve". |
| "We currently expect 5.5% to be the peak in interest rates, but there is a very real risk that interest rates could go higher still." | "We currently expect 5.5% to be the peak in interest rates, but there is a very real risk that interest rates could go higher still." |
| Most experts have not ruled out a rise in interest rates in the near future. | |
| The economy remains strong, with forecasts predicting 3% growth in the first few months of 2007, while inflation has been significantly above Bank targets for a number of months, partly as a result of high fuel costs. | The economy remains strong, with forecasts predicting 3% growth in the first few months of 2007, while inflation has been significantly above Bank targets for a number of months, partly as a result of high fuel costs. |
| Meanwhile, the housing market is resilient. The latest Halifax data showed property prices rising 1.3% in January, although the group expects prices to dip later this year. | Meanwhile, the housing market is resilient. The latest Halifax data showed property prices rising 1.3% in January, although the group expects prices to dip later this year. |