6 June 2001, 15:04  BOE leaves key UK interest rate unchanged at 5.25%

London, June 6 (BridgeNews) - The Bank of England's Monetary Policy Committee voted on Wednesday to leave its key lending rate unchanged at 5.25%. Analysts had widely predicted the move in the light of recent strong consumer sector activity and the timing of the general election on Thursday. * * * The MPC did not comment on its decision. Interest rates in the U.K have fallen from 6.0% in January to 5.25% in May, as the MPC has acted to protect the domestic economy from the worst effects of the global slowdown. It has so far succeeded in supporting the consumer sector but the internationally exposed sectors, like manufacturing, are already suffering. The MPC voted unanimously for another 25-basis-point cut in May, with external member Sushil Wadhwani pressing for an even more aggressive 50-basis-point cut. Most economists expect at least one more cut in the coming months, although they generally qualify their predictions by saying much depends on the speed of any recovery in the U.S.

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