Bank of England holds interest rates at 0.5%

Fears over a further deterioration in the economy were raised by Bank of England members this month although policymakers voted unanimously in favour of holding the level of emergency support.

The nine-strong Monetary Policy Committee (MPC) voted unanimously in favour of holding interest rates at 0.5% and keeping the level of quantitative easing (QE) at £275bn, following October’s decision to inject a further £75bn into the economy.

Minutes from the MPC’s December meeting revealed that some committee members thought the outlook for the economy had deteriorated during the month and further money printing would be required in due course.

Vicky Redwood, UK economist at Capital Economics, said: “December’s UK MPC minutes reiterate the committee’s view that there is little point in trying to fine-tune policy, but nonetheless suggest that the door remains open to more QE before too long.”