INTEREST rates are likely to remain steady for the foreseeable future, the Bank of England indicated yesterday as it edged down its forecasts for inflation and growth in the wake of stock market slides.
In its quarterly inflation report, the Bank of England said the recent equity falls were expected to dampen Britain's economic recovery leaving growth weaker than previously forecast.
The Bank also said the outlook for inflation, which fell to 1.5 per cent in June, was weaker than before.
It is expecting inflation to rise to above two per cent by the end of this year and drift up to the 2.5 per cent target by the end of the two-year forecast period.
Rates have been held at their 38-year low of four per cent for the past nine months.
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