The Bank of England held interest rates at 5% yesterday amid further signs of weakness in the housing and car markets.

The inaction by the monetary policy committee was widely expected and the Bank did not release a statement, but markets are increasingly convinced it will start a series of interest rate cuts late in the year.

Economists remain much less sure though whether the Bank will or should start cutting rates soon, especially with the pound’s decline likely to raise import prices further and provide a stimulus to Britain’s exporters.

Financial Times, The Times

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