Article: Rates stay at 4 per cent as share woe hits home

INTEREST rates were pegged at four per cent for the eighth month in a row today as concern about stockmarket turmoil and weak inflation outweighed concerns over soaring house prices.

Concluding their two-day meeting at lunchtime today, members of the Bank of England's Monetary Policy Committee voted in favour of leaving rates at 38-year lows, as signs of a slowing in the service sector emerged along with evidence that consumer spending may be coming off the boil.

Despite figures out today from the Halifax showing that house prices were still rising by nearly 20 per cent a year, the MPC was more concerned about the weakness of the economic recovery than the strength of the interest ...

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