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THURSDAY 7TH APRIL 2005
 BANK LEAVES UK RATES AT 4.75%

In it's last meeting before the general election the Bank of England today kept interest rates on hold at 4.75% for the eighth month in a row.

Recent data showing softer consumer spending and the slowdown in the housing market were widely flagged as reasons for the Monetary Policy Committee to pin rates even though last month two of the nine committee members voted to raise rates.

The two calling for a rise were Paul Tucker and Andrew Large, deputy governor responsible for financial stability. They argued then that there was already a degree of excess demand in the economy. But signals since have become quite mixed, making an interest rate change in any direction more difficult to argue.

Many analysts had been predicting a rate increase during the early part of the year and it may yet come after the Bank publishes its quarterly inflation report in May. However, experts are now markedly undecided as to whether rates have peaked or will take another hike.

The timing of the General Election means that the next Monetary Policy Committee meeting will conclude on the morning of Monday 9 May, with the decision announced at 12 noon.


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