Bank holds rates at 0.5%

The Bank of England has held interest rates at 0.5%, marking the 18th consecutive month they have been at this historical low.

Its £200bn quantitative easing programme was also left unchanged. The nine-strong Monetary Policy Committee's decision to hold rates was widely expected, with the need to support the economy amid fears of a double-dip taking precedence over inflationary fears. The CPI measure of inflation was 3.1% in July. Inflationary concerns - the current rate is well above the 2% target and there are growing fears of further price rises - prompted committee member Andrew Sentance to vote for a rise in rates to 0.75% for the past three consecutive months. But lingering doubts about the strength ...