News Column

UPDATE: Bank of England holds rates at 0.5%

July 10, 2014

London (Alliance News) - The Bank of England left interest rates at 0.5% on Thursday, and the scale of its quantitative easing programme at 375 billion pounds (642 billion dollars).

The Bank's governor, Mark Carney, last month warned that interest rates, which have been at their record low for more than five years, could rise sooner than markets expect.

Analysts now predict a rate rise at the end of this year or early next year.

But business leaders have urged the Bank not to raise rates until the country's economic recovery is firmly underway.

The Bank "must make it clear that interest rate rises will only be considered when economic circumstances justify such a move," said David Kern, chief economist at the British Chambers of Commerce.

"Higher interest rates may be required in the future, but such a move is totally unjustified at the present time."

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Source: Alliance News

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