Thursday, November 08, 2007
Bank holds interest rates at 5.75 percent
Thu Nov 8, 2007 12:30pm GMT
LONDON (Reuters) - The Bank of England held interest rates at a six-year high of 5.75 percent for the fourth month running on Thursday, but expectations of a cut soon are growing as stocks slide and house prices fall.
Only a handful of analysts had expected the central bank to do anything but keep borrowing costs steady, although many were on alert for a surprise cut due to the troubles in financial markets which show no sign of ending.
As a result, the pound raced to a fresh 26-year high above $2.1079 while the FTSE-100 index of leading shares fell back. Government bonds also gave up some of their previous gains.
Most experts predict the Bank's Monetary Policy Committee will cut borrowing costs early next year as the economy slows in response to tighter lending conditions and rocketing oil prices.
DATED: 08.11.07
FEED: BoE
LONDON (Reuters) - The Bank of England held interest rates at a six-year high of 5.75 percent for the fourth month running on Thursday, but expectations of a cut soon are growing as stocks slide and house prices fall.
Only a handful of analysts had expected the central bank to do anything but keep borrowing costs steady, although many were on alert for a surprise cut due to the troubles in financial markets which show no sign of ending.
As a result, the pound raced to a fresh 26-year high above $2.1079 while the FTSE-100 index of leading shares fell back. Government bonds also gave up some of their previous gains.
Most experts predict the Bank's Monetary Policy Committee will cut borrowing costs early next year as the economy slows in response to tighter lending conditions and rocketing oil prices.
DATED: 08.11.07
FEED: BoE
