MPC and ECB maintain rates

The Bank of England and European Central Bank have left interest rates unchanged. Members of the B...

The Bank of England and European Central Bank have left interest rates unchanged. Members of the Bank of England’s MPC kept interest rates at 5% amid continued concerns about inflation which is currently over double the Government’s target of 2%. However, analysts are expecting rate cuts by the end of the year as the UK economy returned zero growth in the second quarter. The last change in rates was in April when there was a reduction of 0.25%. In the Eurozone, rates remained at 4.25% after inflation worries also caused an increase of 0.25% in July. However, the central bank was sai...