UK interest rates held at 0.5%
Bank chooses to keep base rate at 0.5 per cent
UK credit card holders will be pleased to hear that interest rates have once again been held at their record low of 0.5 per cent.
Yesterday (8th September), the Bank of England's Monetary Policy Committee (MPC) announced that the base rate would continue to be frozen, while it also rejected calls to inject more money into the economy via its quantitative easing programme.
Business leaders had raised concerns that the economy could enter into a double-dip recession without an extension to the QE scheme but have accepted that changes occur until later in the year.
Ian McCafferty, the CBI's chief economic adviser, claimed it is still too early for the MPC to make any policy changes.
He said: "We hope the UK economy will be on a firmer footing by next year, when a lower inflation rate will bring some relief for households.
"However, the global downside risks remain acute, so the Bank must continue to monitor global developments very closely and be prepared to be flexible."
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