8 Oct 2010

Bank of England and ECB keep rates on hold

6:06 am on 8 October 2010

The Bank of England has held interest rates in Britain at a record low of 0.5% for the 19th consecutive month.

The decision by the Monetary Policy Committee had been expected.

The Bank also said it would not be expanding its £200 billion quantitative easing programme.

The European Central Bank also kept interest rates on hold at 1% on Thursday, as expected.

The BBC reports it is the 17th consecutive month the rate has stayed at the record low, amid concerns over the economic outlook.

Earlier this week, the International Monetary Fund warned that the eurozone would see only moderate growth this year and next.

ECB president Jean-Claude Trichet gave no hints over whether further stimulus measures will be taken.