Interest rates in the UK are to remain the same following a decision by the Bank of England.
The Bank of England’s decision means that rates will remain at 4.75%.
Last month, the Bank drew a mixture of surprise and criticism with its decision to raise rates a quarter point.
This was described by the Bank as an ‘early rise’, made in order to stave off the prospect of a steeper rise later.
Graeme Leach, chief economist at the Institute of Directors, said: “This pause was expected but we are not out of the woods yet.
“Above trend GDP growth, above target inflation, strong money supply growth, together with energy and commodity price pressures, all suggest further rate rises are very possible.
“The inflation genie isn't completely out of the bottle, but his head is sticking out of the top.”
© Crimson Business Ltd 2006
