BOE Holds Rate at 0.5%

The Bank of England has held UK interest rates at a record low of 0.5% for another month.

It has also decided not to extend its quantitative easing programme, designed to stimulate lending in the economy, beyond the £375bn already spent.

The Bank’s Monetary Policy Committee has held rates at 0.5% since March 2009 in a bid to help economic recovery.

Rates were expected to rise early next year, but economists think this will be pushed back due to recent poor news.

This week, surveys indicated a slowdown in the UK services sector and construction industry.

The Chancellor, George Osborne, has also warned that the UK will not escape the slowdown in the eurozone.

However, on Thursday figures from the Office for National Statistics said industrial output rose more than expected in September, boosted by a major North Sea oil field coming back on stream and a rebound in car production.

The ONS said factory output rose 0.6% in September from August.

via BBC

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