Thu, 09 Jul 09
The Bank of England (BoE) has kept interest rates on hold at 0.5% for the fourth month in a row.
The move was widely expected and comes as the BoE continues to assess the impact of its programme of quantative easing, which has already involved ploughing around £75bn into the economy through buying assets such as government bonds and company debt.
In May the BoE announced it plans to extend the programme by a further £50bn. It also has the option to extend the amount by a further £25bn.
This latest decision comes as official data shows that the UK economy shrunk by 2.4% during the first three months of the year, the sharpest decline for more than 50 years.
Commenting on the BoE's decision Keshav Thukaram, managing director of Smartlandlord.co.uk said: “With the UK’s recovery prospects still fraught with uncertainty, any move to push up interest rates remains a long way off. Interest rates are on hold indefinitely.”
By Joe LepperSee also - Mortgages, House Price Indices
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