UK interest rates stay static at 0.5%

UK interest rates were held at the record low of 0.5% again, a rate which has stayed the same since March 2009, the Bank of England’s Monetary Policy Committee (MPC) confirmed yesterday.

The continuing worries about the strength of the economic recovery meant it was a straightforward decision for the committee to hold the rate stationary.

The policy of quantitative easing (QE), which added another £75 billion into the economy last month, did not see any increases. This was despite the growing turbulence in Europe, notably Greece and Italy, which has sent ripples of fear across the rest of the eurozone.

However, the MPC said that the latest QE programme would take a further three months to be fully completed and reviewed.

Economists stated that possible further QE-led action to boost the economy past the next three months could not be ruled out.

News of inflation and growth forecasts, due to be published by the Bank on Wednesday, will be awaited with considerable interest.