Bank Base Rate held at 0.5%

The Bank of England has decided to hold rates for the first time in seven months as analysts and businesses looked to the central bank to re-affirm its commitment to quantitative easing. Rates remain at an all-time low after six cuts since October last year, when interest rates stood at 5%.

Alistair Darling, the chancellor, has agreed to the Bank spending £75bn on quantitative easing measures over a three-month period, with another £75bn committed if necessary.

But last month during a session with the Treasury Select Committee King called the Bank’s commitment to the process into question with comments that the full £75bn may not be spent at the risk of fuelling inflation.