Bank holds interest rates

10/09/2009

The Bank of England has held interest rates at a record low of 0.5 per cent for the sixth month in a row today (September 10th) amid signs that the UK is slowly pulling out of recession.

In addition to holding rates at their 315-year low, the Bank's Monetary Policy Committee (MPC) also announced it would continue with its programme of effectively printing money in a bid to encourage banks to increase their lending to individuals and businesses.

Last month, the committee voted to pump up to £175 billion into the economy through quantitative easing.

In a statement, the MPC said it expects the policy to take another two months to complete.

The rates decision comes amid signs that the downturn has started to ease.

Earlier this week, thinktank the National Institute of Economic and Social Research said the economy grew by 0.2 per cent in the three months to August.

Nationwide's Consumer Confidence Index also showed a "moderate increase" last month, with Brits saying they felt more optimistic about both the current economic situation and the outlook for the future.

Nevertheless, the majority of consumers remained cautious about making big purchases in the current climate, the building society said.

Tags; Current UK Economy, Recent Graduate Debt, Young Family Finances, Retirement Money Problems, Credit Card Lifestyle,

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