7 Dec 2012

UK interest raters held at 0.5%

12:53 pm on 7 December 2012

The Bank of England is keeping interest rates at 0.5%. They have been held at this level since March 2009.

The Bank on Thursday also decided not to extend its quantitative easing stimulus programme, under which £375 billion has been injected into British financial system.

Under QE, the Bank creates money and uses it to buy government bonds to try to stimulate the economy.

Britain came out of recession recently, growing 1% between July and September. The rebound, which was helped by tourist spending during the Summer Olympics, followed nine months of modest economic contraction.

However, the BBC reports recent data suggests the economy remains finely balanced between growth and recession.