Bank of England freezes interest rates

The Bank of England has frozen interest rates at 5.25 per cent, reportedly due to a concern over inflation risks.

After cuts last month and in December, it was widely expected that the Monetary Policy Committee (MPC) would vote for no change this month.

Howard Archer, Global Insight economist, said: "Current elevated inflation risks meant that it was too soon for the Bank of England to be comfortable about cutting interest rates again despite serious concerns about the growth outlook."

It is still believed that interest rates will be cut again in the future as a response to slowing economic growth.

The bank of England is aiming to keep inflation close to two per cent and in January the annual inflation rose to 2.2 per cent.

Last month the committee voted eight to one in favour of the cut. The results of this month''s vote will be released on March 19th with the minutes of the meeting.

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