Interest rate held at 0.5%

UK Interest rates have, again, been held at a record breaking 0.5% by the Bank of England MPC.

Inflation rates remains at more than double the Bank's target of 2%.

James Kersh comments "Following the Bank's decision to extend its Quantitive Easing Programme to £275 billion in October, and given the dismal EU situation, we did not expect there to be any changes.

"The inflation committee is due to meet this month, where they are expected to be presented with a much weaker set of growth figures. With the situation worsening in Europe, a change in Interest Rates over coming months may be on the cards."

Low levels of interest are expected to stimulate spending and borrowing, and make investing more attractive. The problem we have at present is that investors are unable to save

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