BoE holds interest rates

<p>Interest rates have been held again by the Bank of England.</p>

The Bank of England (BoE) has confirmed it is holding interest rates for another month.

It is more than four years since interest rates were dropped to a record low for the UK of 0.5 per cent, with no indication an increase will be brought in any time soon.

The Monetary Policy Committee also announced that its quantiative easing scheme is going to be unchanged for another month.

It remains to be seen what impact the arrival of new governor Mark Carney is going to have on the monetary policy of the BoE.

Mr Carney – former governor of the Bank of Canada – took over the position from Sir Mervyn King earlier in the week.

Some analysts expect Mr Carney to make a speech on his long-term intentions for interest rates in the near future, but a statement from the BoE indicated a rise is some way off yet.

Commenting on the announcement from the BoE, chief economist at Santander Barry Naisbitt stated that inflation is likely to rise further in the coming months and the growth of the economy could speed up in the second quarter.

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