Praise for BoE as rates remain at record low

The Bank of England (BoE) today held interest rates at a record low as concerns about sluggish growth outweigh worries over high inflation.

Economists predicted rates would stay at 0.5% for the 27th month in a row. The weak economy has led analysts to put back the likely date for the next rate rise to November, despite inflation hitting a two-and-a-half year high of 4.5%. Data released since the Bank's last MPC meeting confirmed UK GDP grew just 0.5% in the first three months of the year after falling a similar amount at the end of 2010. Business leaders welcomed the bank's stance. David Kern, chief economist at the British Chambers of Commerce (BCC), said: "While increased utility prices and high inflation puts the...