ECB hikes rates but BoE holds steady

The Bank of England today held interest rates at 0.5% as fears over a sluggish economic recovery outweighed inflation concerns.

However, the European Central Bank (ECB) hiked interest rates from 1% to 1.25% - the first time it has raised rates in nearly three years. Today's widely-anticipated decision by the BoE's Monetary Poicy Committee to hold rates at historical lows comes amid a glut of gloomy economic data. A report by the National Institute of Economic and Social Research pointing to "weak" growth over the last six months was published yesterday. Figures also showed industrial output declined in February. A slow-down in high street spending and the first annual fall in disposable income for 30 yea...