Thursday, May 5, 2011
No change to UK base rate
UK interest rates have been kept at the record low of 0.5% again by the Bank of England's Monetary Policy Committee. Data this week pointed to a slowdown in growth in manufacturing, construction and services, which economists took as a sign that the Bank would not change rates with the recovery still weak. This is despite the fact that inflation is currently at 4%, double the Bank's target rate. The MPC did not reveal any new quantitative easing measures either.