Interest Rates kept on hold

The Bank of England votes to keep interest rates at 0.5 per cent for the 23rd month in succession.

Link to the article: Channel 4 News

Despite rising inflation, the Bank's Monetary Policy Committee (MPC) decided against an increase in rates, which are at an historic low.

The Consumer Prices Index measure of inflation rose to 3.7 per cent in December, well above the Bank's 2 per cent target - and further rises are expected this year.

But while Britain has come out of recession, there was an unexpected contraction in growth in the last three months of last year - and members of the MPC will have been wary of damaging demand in the economy by increasing borrowing costs for households and businesses.