Bank of England holds rates steady

The Bank of England kept official interest rates steady for a second month running today amid credit market turmoil that has …

The Bank of England kept official interest rates steady for a second month running today amid credit market turmoil that has pushed up the cost of borrowing.

All analysts polled by Reuters had predicted the bank would leave rates at 5.75 per cent after raising them five times since August 2006, and many think rates may have now peaked.

But a significant minority still forecast a rise to 6 per cent later this year as most data still points to an economy firing on all cylinders, and policymakers have been worried about inflation.