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No change from the BoE

Jude Buttle

The Bank of England has kept the base rate at 5%, for the fifth month running.

No change was expected - and that's exactly what happened as the Bank of England (BoE) held the interest rates at 5% for the fifth consecutive month.

There were hopes - especially from the property sector - that a sluggish housing market and the looming threat of a recession would have forced the hand of the Monetary Policy Committee (MPC) to cut rates.

The BoE has predicted rates will remain at 5% over the coming months, as it continues to balance risks to growth and inflation.

Previously, when the MPC met in July, only one member, David Blanchflower, voted for a rate cut.

The European Central Bank also decided today to hold their rates for the euro at 4.25%.