BoE freezes base rate

The Bank of England’s Monetary Policy Committee has voted to freeze interest rates at 5.5%.

This follows a 25 basis point rise in May.

Although many experts predicted the MPC would hold rates over June, there have been fears that UK inflation continues to rise.

This resulted in more than £25bn being wiped from the value of Britain’s top 100 companies yesterday when the FTSE-100 index fell 110 points.

However, a further rate rise is largely anticipated for later in the year.

There have been four rate rises since August 2006.