Interest rates stay on hold

9 December 1999



Interest rates stay on hold

By FWi staff

THE Bank of England has decided that interest rates will remain unchanged in December, bringing some relief to farmers.

The Banks Monetary Policy Committee (MPC) has recommended holding its base rate, which determines the level of interest rates across the economy, at 5.5%.

Quarter-point increases in base rate in September and November took the rate from 5% to 5.5% in just three months.

Those increases piled pressure on already hard-pressed farmers saddled with land and machinery loan repayments.

They also further strengthened an already strong Pound, drawing in cheap imports and making it increasingly difficult for UK farmers to compete.

But the Banks nine-member MPC decided there would be no repetition of the rise this month.