Bank of England set to keep interest rates on hold TODAY despite UK economy stalling after Labour's Budget raid - with fears over resurgent inflation The Bank of England is set to keep interest rates on hold today despite mounting alarm at the stalling economy.
Interest rates, which influence how much banks charge for loans and mortgages, are used as a tool by the central bank to keep inflation at its 2 per cent target level.
However, after drifting downwards from historic peaks the headline CPI hit to 2.3 per cent in October and 2.6 per cent in November.
Most economists think the latest data, and the prospect of price pressures increasing in the coming months, will persuade the Bank's policymakers to hold interest rates at their current level.
The Monetary Policy Committee is expected to keep the base rate at 4.75 per cent when its latest decision is announced at noon.
