UK holds interest rates at 0.5%

<p>Interest rates in the UK have been held again.</p>

The Bank of England's Monetary Policy Committee has confirmed that it has held interest rates for another month.

Following the monthly meeting of the group this week, it was announced the base rate of interest will stay at 0.5 per cent for the time being, remaining at a record low for the country.

Interest rates have been at this level for almost four years and the Bank of England also confirmed there will be no more quantitative easing at this time.

Howard Archer of IHS Global Insight explained that the bar for more money to be put into the economy now looks to be "very high".

"It will likely only occur if the economy loses substantial momentum over the coming months, or if there is major financial turmoil and a sharp upward move in market interest rates when the US Federal Reserve finally starts to taper," he said.

David Tinsley of BNP Paribas added the decision to hold interest rates for another month comes as no surprise, as the Bank of England is currently on "auto-pilot".

The arrival of Mark Carney as governor of the Bank of England this summer, replacing Sir Mervyn King, is yet to have a major impact on monetary policy in the UK.

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