08 April 1998
Interest rates tipped to remain unchanged

By FWi staff

PLEAS by farmer leaders, manufacturers and exporters for a cut in official interest rates are expected to go unnoticed when the Bank of Englands Monetary Policy Committee meets today and tomorrow.

Interest rates are expected to stay at 7.25% because the committee is bound to hold the underlying rate of inflation to an average of 2.5%.

A cut in interest rates is likely to have a negative affect on inflation and the committee would be reluctant to take this risk despite the fact industry is hurting.