Interest rates on hold in waiting game
THE Bank of England held interest rates at record lows yesterday as policymakers weighed up the impact of a eurozone bailout and a hung Parliament.
The Bank's Monetary Policy Committee (MPC) voted to hold rates at 0.5 per cent and left its 200 billion programme to boost the money supply unchanged.
The widely expected decision came as European leaders agreed to prop up the euro and prevent Greece's sovereign debt crisis from spreading – while talks over a possible coalition continue following last week's indecisive election.
Despite worries over inflation, the current political and economic uncertainty will have reinforced the MPC's "no change" stance with the UK making a fragile recovery from recession.
Rate setters are unlikely to move until repair plans for the UK's public finances have been set out by a new government and the economy shows stronger growth.
The MPC is attempting to balance above-target inflation with the need to support a still weak economy.
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Weather for Edinburgh
Sunday 27 May 2012
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