Bank holds rates at 0.5%

The MPC also left its £200bn quantitative easing programme unchanged. The holding of rates was widely expected, despite inflation currently above target at 3.2%. Today's MPC meeting came amid the backdrop of an uncertain economic climate, with figures out yesterday showing service companies posting their slowest growth in activity for over a year. There is also concern over the economic impact of the Government's public sector cuts. Bank Governor Mervyn King recently stressed the importance of sustained economic growth, hinting of further stimulus measures. He told a committee o...