UK interest rates remain unchanged at 0.5%

| July 9, 2009 | 0 Comments

As widely expected, the Bank of England has kept interest rates unchanged at 0.5% today for the fourth month in a row.

Prior to April, the Bank embarked on aggressive cuts to bring inflation down and fight off a prolonged recession. Rates currently stand at the lowest level since the Bank was established over 300 years ago.

There have been signs that economic conditions may be improving and many leading business groups have said the worst of the recession is over.

However, last week official figures revealed that the UK economy shrank by 2.4% in the first three months of 2009 - far worse than expected and the biggest quarterly decline in 51 years.

In addition, it was reported that in the three months to April, unemployment increased to 2.26 million - the highest level since November 1996.

Finally, despite many economists predicting that the Bank would further expand its quantitative easing programme scheme, no new measures have been announced today with regard to boosting the economy.

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