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UK rates set to stay on hold

Amanda Jarvis

October 7, 2002

Thirty of 31 analysts polled this week said the committee would leave its benchmark interest rate at 4% on October 10; the remaining one forecast a cut. In September, the MPC voted unanimously to keep rates steady but said it stood ready to cut them if any further stimulus to the economy looked like it was needed.

According to Reuters, the MPC is worried that another cut in interest rates could further fuel our housing market, where prices are already rising at rates not seen since the late 1980s boom which turned into a crash. It has repeatedly warned that current rates of house price inflation are unsustainable and it doesn’t want to stoke the market further.


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