Bank holds rates at 0.5%

Bank of England's Monetary Policy Committee (MPC) today held interest rates at 0.5% - marking the 17th consecutive month they have been held at the historical low.

The MPC also left its £200bn quantitative easing programme unchanged. The holding of rates was widely expected, despite inflation currently above target at 3.2%. Peter Hensman, director of investment management strategy, at Newton Investment Management says: "The split between the interest rate hawks and doves is becoming more apparent. Despite the news that the UK economy grew by 1.1% in the second quarter, the large overhang of spare capacity is likely to keep policy on hold for now. "However, the improving growth backdrop does raise the prospect of whether the process of reduci...