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Rate hold advised after service sector slowdown


07/11/2007 15:58 
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Bank of England decision-makers are expected to maintain the base rate of interest this month, despite falling rates of growth within the UK's service sector, according to reports.

Purchasing managers from around the country reported that the rate of growth in the service sector had slumped to its slowest rate in over four years ahead of the upcoming decision on interest rates.

The central bank's monetary policy committee (MPC) will reveal its decision over interest rates on Thursday November 7th and most experts are convinced that a change will not be made this time around, reports the BBC.

"We still favour the Bank to leave interest rates unchanged on Thursday, but there is likely to be a very lively debate within the MPC and the vote could well be very close," said Howard Archer, chief economic analyst at Global Insight.

The MPC has opted to increase the base rate of interest in the UK on five occasions since August of last year.

 
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