Interest rate stays at historic low
Bank of England policymakers kept interest rates at emergency lows and held off from further economy-boosting measures today despite fears of a triple-dip recession.
The Bank’s Monetary Policy Committee (MPC) remained in “wait and see” mode again this month, holding rates at their record low of 0.5 per cent and maintaining its quantitative easing (QE) programme at £375bn.
Its decision comes amid mounting concerns that Britain’s economy slipped back into the red in the final quarter of 2012 following figures suggesting the dominant services sector contracted in December for the first time in two years.
The MPC is expected to hold off from any further QE action until the picture becomes clearer.