Interest rates stay put

Interest rates remained the same today, as the Bank of England continued to respond to the uncertainty in property markets and the City. This is the third time in a row the Bank has left rates unchanged. But there is a growing feeling in the City that a slowdown in the economy is already under way, made stronger by the credit crisis triggered by the questions surrounding Northern Rock. It was not a surprise to many that rates remained the same today, although experts in some circles now believe that interest rates may fall before the year is out, or early next year. ?We have pencilled in the first 25bp cut in February, with two further cuts to 5% later next year in May and August. However, this forecast could change as the financial market developments and their impact on the economic outlook becomes clearer,? said Paul Dales from economists Capital Economics.