Interest rates stay at 0.5pc

The Bank of England yesterday held interest rates at 0.5 per cent for the 18th month in a row.

Policymakers also continued with the Bank’s 200bn quantitative easing programme amid uncertainty over recovery.

While the UK economy rose by a far better-than-expected 1.2 per cent in the second quarter, recent data has pointed to sharply slower growth since.

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Fears that UK exporters will struggle to fill the gap left by weaker Government and consumer spending were highlighted earlier in the day when figures showed a record deficit in the trade of goods during July.

Figures from the Office for National Statistics showed the deficit on the UK’s global trade in goods reached 8.7bn in July – much higher than expected after a surge in imports of chemicals and oil and as exports fell.

Recent surveys from the manufacturing and services sectors have also suggested the rally may be fading as firms begin to see much slower demand.