News
The Bank of England will hold interest rates at 0.5% until election
07 January, 2010
The Bank of England recently announced its decision to keep interest rates at 0.5% and to continue its programme of asset purchases to £200bn.
This decision comes in spite of figures showing a two-year high for manufacturing activity, recovering mortgage lending and a positive Christmas trading period.
Reports released this week have shown a steady improvement in the UK economy, which is expected to have finally emerged from recession in the final quarter of 2010. Many predict the MPC will leave interest rates on hold well into this year to avoid threatening the recovery.