The Bank of England Thursday held its key interest rate at 4.75 per cent, amid signs that British house prices have stopped rising and that consumer spending is slowing. The BoE's Monetary Policy Committee has hiked its rate five times at its monthly meetings over the past year, the last time at the beginning of August. Economists believe the rate will not rise again in the near future, with inflation well within the government target range and consumer spending cooling. Manufacturing output is also no longer rising. Investec chief economist Philip Shaw said: "The UK background looks a little less solid than it did a month ago. It is likely the committee will keep rates on hold next month and the debate is whether they will need to rise next year." Businessmen and trade unionists welcomed the news. David Frost, director general of the British Chambers of Commerce, said: "There are a number of threats to growth, such as the relentless rise of oil prices in the face of risks to supply and bullish world demand. "The Bank should now rule out further rises this year, and for the foreseeable future, unless we see an upturn in growth, and in manufacturing in particular," he added. Derek Simpson, general secretary of private sector union Amicus, called on the committee not to hike rates further and "to hold their nerve and not be distracted by house price hysteria and focus on generating productivity and jobs".
