BoE holds rates unchanged

UK interest rates were kept on hold today as policymakers maintained their “wait-and-see” approach ahead of government plans to tackle the UK’s deficit.

The Bank of England’s Monetary Policy Committee (MPC) pegged rates at a record low of 0.5% and left its £200bn (€242bn) programme to boost the money supply unchanged after its two-day meeting.

The committee has not budged on policy since last November and will want to weigh up the impact of Chancellor George Osborne’s emergency Budget – due on June 22 – on inflation before making its next move.