No change in interest rates
7 June 2000
No change in interest rates
BANK of England officials have decided to keep interest rates on hold for the fourth month in a row.
The Monetary Policy Committee decided to leave the Banks base rate, which sets the trend for interest rates across the economy, at 6%.
This will come as a relief to hard-pressed farmers burdened with land and equipment loan repayments.
Last month the MPC decided against raising rates, partly because of the high value of the pound.
Since then, sterling has dropped by 9%, easing the pressure on farmers exporting produce.
Farmers have long argued that a strong pound makes it difficult to compete in the export market and draws in cheap imports.
The recent weakening of sterling has led to speculation that farming could be turning the corner after the worst recession in 60 years.
But National Farmers Union chief economist Sion Roberts said it was too early to claim this and that recent falls only brought the pound back to levels of earlier this year.
He said agriculture has struggled against a pound which has been rising since 1996.
Meanwhile, fresh evidence that the UK economy is slowing down has come with the announcement by the Halifax that house prices fell by 0.4% in May.