Interest rate held at 0.5%

The Bank of England has held the interest rate at a record low of 0.5% and maintained the funding for stimulating economy at £375m, despite mounting pressure to implement emergency measures to avoid a triple dip recession.

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Economic outlook 'fragile' as Bank keeps rates on hold

Although the Bank of England has considered cutting interest rates below the record low level of 0.5%, some economists believe the Bank prefers to use quantitative easing. That involves injecting more money directly into the economy to help stimulate growth.

With the latest extension of QE launched only last month, there was no great expectation for any new announcements from the MPC today... However, the outlook for the UK economy remains fragile, particularly in light of the disappointing official data for the first half of the year and the recent slowdown in global momentum.

– Anna Leach, the CBI's head of economic analysis

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