MPC keeps interest rates on hold

The Bank of England has voted to leave UK interest rates at 5%, despite calls to boost the UK’s flagging economy and housing market with a quarter-point cut.The Bank’s monetary policy committee maintained its firm stance that inflation must be kept tightly in check, even though the UK economy appears to be heading for a sharp slowdown.

By holding rates steady, the committee also declined the opportunity to help homeowners struggling with their mortgage repayments, although lenders have been reluctant to pass earlier cuts on.