Mervyn King is Governor of the Bank of England and Chairman of the Monetary Policy Committee.

The Bank of England’s Monetary Policy Committee (MPC) today voted to keep its key interest rate unchanged at 5.50%.

Recession fears intensified in the UK on Wednesday as the economy's biggest clothing retailer Marks & Spencer reported that sales in December had fallen to a 2-1/2 year low. The report coincided with  data showing a fall in UK consumer confidence. M&S's share price plunged 18.72% in London.

Earlier in the week, the British Retail Consortium reported that retail sales in December had fallen to almost a 2-year low.

UK banks told the Bank of England that they plan to reduce lending to consumers and companies in the first quarter of 2008, compounding concerns about slowing economic activity, according to a survey that was published by the central bank last week.

Bank Statement

The Bank said in a statement that the minutes of the meeting will be published at 9.30am on Wednesday 23 January. 

The decision not to cut will be viewed with dismay in the City but inflation pressures presumably swayed the MPC to wait for further data before cutting the benchmark rate.