Bank of England holds interest rates at 0.5%

10 May 2010 12:00  [Source: ICIS news]

LONDON (ICIS news)--UK base interest rates were held at 0.5% by the Bank of England on Monday as widely expected, given an as-yet undecided national election result and continuing financial uncertainty within the EU.

The bank also decided not to pump more money into the UK economy through its quantitative easing programme.

Its primary rate was unchanged for the fourteenth consecutive month.

The monthly announcement had been delayed from the prior week because of the election. The bank's decision was reached also following the agreement struck by Europe’s finance ministers on Sunday on a significant package of support measures for the euro.

The UK, which is not a eurozone member, offered support limited to a maximum of £8bn (€9bn) to the package.

Uncertainty over what eurozone members and other EU states  might do to help support the euro from the potential knock-on effects of the Greek debt crisis had seriously unsettled global financial markets on Thursday and Friday last week, 4 and 5 May.

($1 = €0.78. €1 = £0.86)

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By: Staff Reporter
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