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Interest rates remain marooned at 0.5 per cent

Interest rates remain marooned at 0.5 per cent

Category: Economy

Updated: 08/04/2010
First Published: 08/04/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
UK interest rates will remain at a record low 0.5 per cent for at least another month, the Bank of England has confirmed.

It is the thirteenth month in succession that the measure has been set at the current level.

The Bank has also announced that it will not pump any more money into the programme of Quantitative Easing (OE), which was established to kick start the economy.

The last time the initiative was enlarged was last November, when an additional £25 billion was added to QE, taking its total value to date to £200 billion.

The programme is likely to be kept under review, with minutes from previous Bank meetings showing that members of the Monetary Policy Committee had not ruled out further enlarging QE, if they felt it was necessary to do so.

Opinion on when the base rate of interest will be increased is mixed, but it seems unlikely that such a change will be made while the recovery is still in the balance.

The Organisation for Economic Co-operation and Development said earlier this week the rate of recovery in the UK economy was likely to outpace many of its G7 rivals, achieving annual growth of 3.1 per cent – the same figure given by the Government.

Furthermore, the British Chambers of Commerce has said the economy expanded in the first three months of this new year, avoiding a double dip recession, although it warned that risks still remained.

Minutes of the Bank's meeting will be published on 21 April.

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