“No change” message given by the BofE

Despite rising debt levels and signs the economy is picking up steam, there was no change at the Bank of England today as the Monetary Policy Committee decided to leave the interest rate unchanged at it’s 48-year low of 3.5 percent.

Data from the UK manufacturing and the service sectors showed a pick-up in activity in August, making any further cuts unnecessary for the time being and analysts said there were “No compelling reason to cut rates."

When the Bank of England cut rates in July the housing market was slowing and there was less risk of boosting household borrowing. However, recent reports show Britons building up record mortgage debts and the Bank has been worried about this.

And although futures markets are already pricing in higher rates by the end of the year, most economists think UK rates will be on hold until at least the start of next year.