BoE adds £25bn to QE programme; holds rates

Interest rates have been held at 0.5% by the Bank of England for the eighth consecutive month.

The Bank's Monetary Policy Committee (MPC) has also opted to pump another £25bn into its quantitative easing programme. Following last month's poor economic figures, which showed the UK was still in recession in the third quarter of 2009, analysts had widely expected the MPC to increase its economic stimulus package. Interest rates are expected to remain at their historic low of 0.5% for the foreseeable future, though inflation is expected to begin rising in 2010. Total spending on quantitative easing has now reached £200bn.