10 May 2010, 17:46  Bank of England hоld interest rates

The Bank of England held interest rates at record lows today as policymakers weighed up the impact of a euro zone bail-out and a hung Parliament. The Bank's Monetary Policy Committee voted to hold rates at 0.5% and left its 200 billion sterling programme to boost the money supply unchanged. The widely-expected decision came as European leaders agreed to prop up the euro and prevent Greece's sovereign debt crisis from spreading - while talks over a possible coalition continue following last week's indecisive election. Despite worries over inflation, the current political and economic uncertainty will have reinforced the MPC's 'no change' stance with the UK making a fragile recovery from recession. Rate-setters have failed to budge policy since November and are unlikely to move until repair plans for the UK's public finances have been set out by a new Government and the economy shows signs of stronger growth.

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