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Interest rates remain unchanged

THE Bank of England yesterday held interest rates at a record low of 0.5% and decided against pumping any more money into the UK economy under its policy of quantitative easing.

Interest rates have now been 0.5% since March 2009, and analysts do not expect any rate rises soon while the economy continues to recover.

The UK economy grew by 0.2% in the first three months of this year, slower than the previous quarter.

In the final three months of 2009, the economy grew by 0.4%.

However, the 0.2% is a first estimate, which could be revised up, or down.

The UK emerged from recession in the final quarter of last year, after six consecutive quarters of contraction.

Ian McCafferty, CBI chief economic adviser, said: “The Bank of England’s decision to leave interest rates and its quantitative easing policy unchanged were expected, as the MPC will be waiting to see how the delicate economic situation develops.

“The news suggests that the economy is improving, but we still believe that growth this year will be modest.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .