Bank holds rates for 16th consecutive month

The MPC also left unchanged its £200bn quantitative easing programme Interest rates have now been at 0.5% since March 2009. The holding of rates was widely expected, despite lone dissenter Andrew Sentance last month voting to increase rates to 0.75% due to a pick-up in inflation. Inflation remains above the central bank's 2% target at 3.4%. Most analysts have ruled out a hike in rates until next year. Policy members last increased the base rate in the Summer of 2007 owing to fears about the global economy. Meanwhile, the European Central Bank is expected to hold rates at a re...