Bank Of England Keeps The Interest Rate The Same

Date Published 04 October 2007

The Bank of England kept its benchmark interest rate unchanged at a six - year high as policy makers assessed the effect on the economy of higher credit costs and a run on Northern Rock Plc.

The Monetary Policy Committee,led by Governor Mervyn King,left the bank rate at 5.75%, matching the forecast of all except one of the 60 economists surveyed by Bloomberg News.

The decision follows panic among depositors at Northern Rock after money-market rates jumped,leaving the bank unable to fund its business.The run on the lender,the first in more than a century,has clouded the outlook for economic growth and inflation,and sparked crticism of the way the central bank handled the seizing-up of credit over the past two months.