Interest rate held at 0.5%

The Bank of England’s Monetary Policy Committee (MPC) has once again frozen the interest rate at 0.5 per cent.

It also agreed to continue with quantitative easing to help shore up the economy.

The interest rate has remained unchanged since March after the MPC took drastic action to tackle the global economic crisis.

Quantitative easing will be maintained at the level of £200bn.

UK economist at BNP Paribas Alan Clarke said: "Everything pointed to this decision. The labour market is doing better than expected and the GDP and inflation are also okay.

"The decision is not a surprise. However, I am worried that Government Bond gilts are rising quite sharply.

"I have argued in favour of quantitative easing and think there should be more of it. There is a debate of stopping it but I think ceasing it too early could threaten our tentative recovery."