Interest rates kept at 0.5 per cent

From The Publican

By Hamish Champ , 08-Oct-2009

Related topics: General News, Company & City News

The Bank of England had held interest rates at 0.5 per cent for the seventh month in a row.

 

Some analysts expect rates to remain at current levels until well into next year.

 

The decision to keep rates as they are was expected and came as the Bank said it would continue to pump up to £175bn into the UK economy to stimulate recovery through its programme of quantitative easing.

 

It is believed official figures to be released later this month will reveal that the country's economy has finally emerged from recession.

 

Noting the Bank's decision to peg rates, Dr Helen Hill, policy director at the London Chamber of Commerce and Industry, said: "With a double dip recession still a much greater threat than runaway inflation, the only sensible option was to keep rates on hold.

 

"The business community is not expecting the [Bank of England] to make any bold changes in rates in the coming months while the UK's economic recovery remains tentative."

Find us on Facebook

Spotlight

Legal Q&A: Private birthday parties and wine measurements

Legal Q&A: Private birthday parties and wine measurements

In this week's legal Q&A, our experts look at issues around hosting private birthday parties and wine...

Legal advice: The risk of fire is always present

Legal advice: The risk of fire is always present

Fire risk assessment is crucial at at time of year - and especially over the Christmas period....

123

Follow us on