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Interest rates held again at 0.5%
The Bank of England has kept interest rates at the historic low of 0.5% for the 12th month in succession.
This decision was widely expected, as it is feared that any rise in the cost of borrowing could damage the country's economic recovery.
Despite the UK officially exiting recession with a 0.3% growth in the last quarter of 2009, some economists are warning that the recovery is still fragile.
It was also announced that no more money will be pumped into the economy under its quantitative easing (QE) programme for the time being. The Bank halted QE last month, having spent £200bn.
"It would be wrong to contemplate raising interest rates or scaling back the QE programme at present. Despite the upward revision to GDP in the fourth quarter of last year, the economy remains weak and fragile. Businesses are still under serious pressure and there is no room for complacency," said David Kern, chief economist at the British Chambers of Commerce.
Post Date: March 4th, 2010
This decision was widely expected, as it is feared that any rise in the cost of borrowing could damage the country's economic recovery.
Despite the UK officially exiting recession with a 0.3% growth in the last quarter of 2009, some economists are warning that the recovery is still fragile.
It was also announced that no more money will be pumped into the economy under its quantitative easing (QE) programme for the time being. The Bank halted QE last month, having spent £200bn.
"It would be wrong to contemplate raising interest rates or scaling back the QE programme at present. Despite the upward revision to GDP in the fourth quarter of last year, the economy remains weak and fragile. Businesses are still under serious pressure and there is no room for complacency," said David Kern, chief economist at the British Chambers of Commerce.
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Post Date: March 4th, 2010
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