The Bank of England kept interest rates at 4.5 per cent today, the 10th month in a row. This despite fears and a fall in markets as many central banks are gearing up to increase rates to counter concerns over inflation.
Our view:
Despite what everybody wants, low interest rates mean people have more money to spend, which creates inflation, the enemy of a stable economy. Expect rate rises in many overseas countries. The Bank of England may 'hold fire' for a few months yet.