Interest rate remains at record low
8th July 2010
Interest rates have been kept at 0.5% as the Bank of England put concerns about inflation to one side in a bid to protect the economic recovery.
The £200 billion programme to inject money into the economy was also left in place by the Monetary Policy Committee.
It comes after MPC member Andrew Sentance split the committee by voting to increase rates to tackle inflation last month.
But fellow committee members have warned it is too early to act, with the recovery still uncertain and Chancellor George Osborne's savage Budget squeeze to slash the deficit likely to slow the economy.
Mr Sentance, whose vote last month was the first call for a rate hike in nearly two years, believes there are enough recovery signs in the economy to absorb a rise.
But recent survey data have flagged up slowing growth among manufacturers and services firms, casting doubt over the sustainability of the recovery.
Fellow MPC member Adam Posen has said he was kept awake at night by the risks of slashing too swiftly, while committee colleague David Miles also believes it is too early to move.
Copyright © Press Association 2010
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