UK interest rates held at 0.5%

The Bank of England's Monetary Policy Committee today voted to maintain UK interest rates at 0.5%.

Barry Naisbitt, Chief Economist at Santander, said: "With three Monetary Policy Committee (MPC) members voting to raise rates last month and inflation well above the target rate at 4%, today's decision to hold rates is likely to have been another split vote.  The relatively weak recent output growth and consumer confidence figures are likely to have played a major part in persuading MPC members to keep rates on hold.  The May Inflation Report, which will be published next week, will update the inflation projection and also, together with the MPC minutes, give a clearer guide to how the Committee sees the economy evolving."