Bank of England tipped to hold rates at 0.5%

The Bank of England is expected to hold interest rates at a record two-year low of 0.5% in today's interest decision as slowing global growth overshadows inflation fears.

Economists expect members of the MPC will keep rates on hold for the 27th consecutive month on fears the UK will be hit by the slowdown in global economy, a day after Fed chairman Ben Bernanke said the recovery has lost pace in US and eurozone. The BoE and the government forecast UK growth will rely heavily on foreign demand and business investment this year as public spending cuts squeeze domestic consumption, while they are likely to dismiss inflation at 4.5% as externally-driven, Reuters reports. While BoE chief economist Spencer Dale and MPC member Martin Weale are expected to con...