UK interest rates go unchanged

British interest rates were kept at 4.75% today amid signs that five rises over the last year had finally put the brakes on house prices and consumer spending.

The latest no-change decision – the second in a row from the Bank of England’s Monetary Policy Committee (MPC) – followed speculation among economists that interest rates were close to their peak.

Most experts believe the MPC may not raise rates again this year, particularly as evidence mounts that house prices are off the boil and that firms are feeling the heat from oil prices remaining above $50 a barrel.

The no-change decision was welcomed by British industry leaders who claimed it would have been “reckless” to raise rates in the current uncertain climate.