UK Interest Rates

UK interest rates have been held at their record low of 0.5% for another month by the Bank of England.

The Bank also kept the size of its bond-buying stimulus programme unchanged at £375bn.

No changes had been expected to either rates or the bond-buying measure, despite recent evidence that the UK economy is continuing to recover.

Most economists do not expect the Bank to increase interest rates until the first half of next year.

The recent fall in the rate of inflation has also reduced any pressure on the Bank’s monetary policy committee (MPC) to raise rates. The UK’s inflation rate fell to 1.7% last month, which was a four-year low and below the Bank’s target of 2%.