Bank of England keeps rate at record low

The Bank of England's Monetary Policy Committee has kept UK interest rates once more at a record low of 0.5 per cent.

There rate has been frozen for 25 months, even though inflation is more than twice the Bank's two per cent target rate.

Last month, three MPC members again voted for a rise.

Fionnuala Earley, UK Consumer Economist at RBS said: "It will have been the same fine balancing act between recovery and inflation at the MPC meeting today and once again the scales tipped in favour of holding the Bank Rate steady.

Disappointing news on household incomes and the retail sector, just ahead of the hit to pay packets from tax and benefit changes this month, seems to have swayed the balance …for now."