Interest rates: Bank of England maintains record low of 0.5%

Interest rates were held at a record low of 0.5 per cent today by the Bank of England.

The bank’s quantitative easing (QE) programme remained at £275 billion following the increase of £75 billion in October.

Economists still expect a further £50 billion of QE from the Bank of England in both the first and second quarters of this year, taking the total up to £375 billion.

Interest rates have been 0.5 per cent since March 2009.

Holding interest rates at the record low will be welcomed by borrowers, but the extended period of lower lending costs spells more misery for pensioners and savers, who will continue to suffer low returns on their money at a time when inflation is eroding the value of their deposits.