Interest Rates Still Held At 0.5%

Interest rates have been kept at the record low of 0.5%. This is now the 27th month that interest rates have been kept on hold.

This news will come as some relief to families who have taken out mortgages. This delay will mean that they will not be paying back too much money yet.

The Bank of England Monetary Policy Committee (MPC) is still divided over the question of raising interest rates. Some members of the MPC have argued that raising interest rates could knock the UK economy of its recovery course.

The economy has already looked weak this year and some have predicted a double dip recession. These kinds of conditions make the MPC members reluctant to change things.

The delay in raising interest rates will come as a blow to those with large amounts of savings as inflation may mean that they are losing money.

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