10 April 2003, 15:27  BOE keeps interest rates on hold at 3.75%

LONDON, April 10 - The Bank of England left interest rates steady on Thursday at their 48-year low of 3.75 percent for the second month in a row, as expected. Only four out of 26 analysts polled last week had expected the Monetary Policy Committee to cut interest rates despite the deterioration in business and consumer confidence because of the war in Iraq. The majority had thought that the central bank would want to avoid cutting borrowing costs a day after Chancellor of the Exchequer Gordon Brown's annual budget statement as a move so soon after could be construed as a judgement upon it. Still, with signs that consumer demand, the economy's main prop in recent years, is faltering, analysts predicted another cut could be likely in the months ahead. The BoE made no statement to explain its decision.//

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