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Interest rates maintained

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13/01/2006

The Bank of England held the base interest rate at 4.5% for a fifth successive month yesterday, as signs of a slight upturn in manufacturing reinforced its ‘wait and see’ stance regarding growth.

The decision was widely expected, but it left analysts still divided over whether next month might bring a cut in rates.

The likelihood of a reduction has been diminished by a report this week from the British Retail Consortium showing the best high street sales over Christmas for three years and other studies pointing to a revival in the property market.

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