Bank of England holds interest rates at 4.5%

The Bank of England (BoE) held interest rates at 4.5 per cent today following last month's quarter-point cut.

The Bank of England (BoE) held interest rates at 4.5 per cent today following last month's quarter-point cut.

Most analysts expected a slowing economy will prompt the central bank to cut rates again, although there was no agreement on whether the next reduction would be this year or in 2006.

However a growing minority predict the BoE's next move would be a rise as it tries to keep a lid on inflation, pushed higher by soaring oil prices.

The BoE offered no statement to accompany its rate decision.