Bank holds rates at 0.5%; no further QE

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The Bank of England has held interest rates at 0.5% and left unchanged its quantitative easing programme at £200bn.

Interest rates have now been held at their historical low since March 2009, with most analysts now expecting no change until next year. The latest decision to hold rates comes amid volatility in the eurozone as debt contagion fears linger following the Irish bailout. Inflation has also remained well above the Bank's 2% target at 3.2%. The MPC's decision not to pump more money into the system comes as stronger UK growth figures and a resurgent manufacturing sector have served to dampen double-dip fears. Economic output increased from 0.5% to 0.6% in the three months to November, acc...

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