Bank of England

The Bank of England (BoE) today kept interest rates at a record low of 0.5% as uncertainty remains over who will govern Britain.

Interest rates are forecast to stay on hold today, as the Bank of England (BoE) looks to lend stability to the political and market turmoil.

Gross lending by mutuals increased by 36% in March to £1.597m compared to £1.174m in February.

Bank of England Governor Mervyn King believes interest rates in Britain will stay lower for longer than the markets expect to compensate for the fiscal pain ahead.

Taxes must rise sharply over the next decade to bring down borrowing, according to the National Institute of Economic and Social Research (Niesr).

The Bank of England's Monetary Policy Committee (MPC) voted unanimously to hold fire on any changes to interest rates this month, but some members are growing increasingly concerned about inflation.

The Bank of England's fantasy forecast of a decline in annual CPI inflation to about 1% in early 2011 looks even less credible in the wake of March numbers showing an unexpectedly large rise from 3% to 3.4%.

Inflation rose to 3.4% in March, according to the Office for National Statistics.

Interest rates have been kept on hold at 0.5% by the Bank of England.

In the run up to the election, there are changes on the horizon for regulating insurance, particularly in the area of consumer protection.