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Experts unanimous on interest rate

Tuesday 17 October 2000 19:00 EDT
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The Bank of England's monetary policy committee voted unanimously for this month's decision to keep interest rates on hold.

The Bank of England's monetary policy committee voted unanimously for this month's decision to keep interest rates on hold.

The surprise news about the October 5 meeting sent the pound down against the dollar.

The minutes of the bank's meeting two weeks ago show that all nine members supported the decision to keep the rate unchanged at 6%.

The previous two votes were far closer, both finishing in 5-4 decisions not to raise the rates. The unanimous decision will raise hopes that interest rates have peaked.

However, the minutes did show a worry that possible labour shortages could affect future decisions "Labour market conditions would need to be monitored very carefully for early signs of inflationary pressure" they said.

Interest rates have now been on hold for the last eight months as the economy shows signs of slowing down.

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