UK central bank holds interest rates at record low 0.5 percent
Linda Young – AHN News Writer
London, United Kingdom (AHN) – Bank of England’s Monetary Policy Committee voted Thursday to hold interest rates at the historic low of 0.5 percent.
Analysts had expected the rate setting body to keep the central bank’s key interest rate where it was. In addition, the Bank did not announce any new quantitative easing.
Data released earlier this week revealed that output in both industrial production and manufacturing fell more than expected in October. Moreover, gross domestic product during the three months to November grew weakly at the pace of 0.3 percent, according to estimates by the National Institute for Economic and Social Research.
Furthermore, analysts say that tighter liquidity facing banks coupled with the ongoing economic crisis in the eurozone make the UK vulnerable to recession.
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