Interest rates now one year at 0.5%

Interest rates were today held at 0.5% by the Bank of England's Monetary Policy Committee (MPC), marking one year since they hit the record low.

The Bank also confirmed it will not be furthering its quantitative easing programme.

Monetary policymakers first cut the base rate to 0.5% - the lowest in its 300-year history - in March 2009.

Though inflation rose to 3.5% in January, the Monetary Policy Committee (MPC) is concerned about the effects a rate rise could have on the fragile economic recovery.

The most recent figures from the Office for National Statistics (ONS) show the economy grew by 0.3% in the final quarter of 2009. The recovery is stronger than an initial 0.1% estimate, but the economic situation remains difficult.

However, rates could rise before the end of the year if the economy strengthens, in order to control inflation.