News: Interest Rates Held at 0.5%

Thu, 10 Sep 09

The Bank of England (BoE) has held interest rates at 0.5% for the sixth month in a row.

The move has been taken as the BoE waits to see the full effect of its quantitative easing initiative, which involves pumping up to £175bn into the economy.

The decision also comes as optimism among economic experts grows in the UKs ability to come out of recession.

The FTSE 100 share index is now above 5,000 for the first time since autumn 2008. It also emerged this week that in July UK manufacturing output rose at its fastest rate in 18 months.

In addition, latest research by the National Institute of Economic and Social Research said the UK economy is already growing, by 0.2% between June and August this year.

The institute added: "There may well be a period of stagnation now, with output rising in some months and falling in others."

By Joe Lepper

See Also: Mortgages


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