Bank set to freeze rates at 4.75%

THE Bank of England is expected to freeze interest rates at 4.75% this week after business and consumer confidence failed to recover after the general election.

Economists are predicting the bank's Monetary Policy Committee (MPC) will hold rates for the 10th month in a row, but many believe that recent economic data has been so weak that lower borrowing costs could soon be on the cards.

Gloom is greatest in the retail and manufacturing sectors due to falling demand, while a weaker housing market has left many homeowners unwilling to spend.