UK Interest Rates Remain at Record Low of 0.5%

The Bank of England has held UK interest rates at a record low of 0.5%.

It has also decided not to extend its quantitative easing programme, designed to stimulate lending in the economy, beyond the £375bn already spent. 

Rates have been at 0.5% since March 2009, with the market expecting a small rise early next year. 

There has been increasing speculation over when the bank will start to raise the rates again.

Markets are expecting a rise at some point next year. However some think it could be later this year due to the General Election which is scheduled for May 2015. 

The UK economy has been growing strongly this year – with GDP rising by 0.9% between April and June, following a 0.7% rise in the previous quarter – and is on course to outperform many other developed economies this year. 

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