MPC leaves interest rates on hold

The Bank of England's Monetary Policy Committee (MPC) has left rates on hold at 0.5%.

The MPC, which also left its quantitative easing program on hold, ignored calls from organisations including the Save Our Savers group to hike rates, despite soaring inflation which is more than 2% above the official target. Rates have now been frozen for nearly two and a half years, after being slashed to 0.5% back in March 2009. However, with signs the economic recovery is shaky, the MPC is yet to make a move to counter price rises. The committee has previously said it expects inflation to fall next year when the impact of the VAT rise is stripped out.